Ask uncle for a loan

ANYONE looking for a pawnshop can still find one by looking for three golden balls hanging outside.

According to legend, the balls honour St Nicholas who saved three girls from destitution by lending each a bag of gold as a dowry so she could marry. Dowries are no longer a necessity but pawnshops remain and two pawnbrokers, H&T and Ramsden, are quoted on the stock market.

As the cost of living rises, they and others are doing a roaring trade, and not only with those of modest means.

The well-heeled are increasingly pawning Rolex watches, diamonds and fine art in preference to pay-day loans when needing some ready cash, sector insiders said.

the bank will deliver at least two more hikes and Sterling is likely to strengthen.

US Dollar

USD/GBP: Up from $0.80 to $0.82

USD/EUR: Up from €0.91 to €0.93

The US dollar traded sideways through the end of January as a prevailing risk-on mood countered a stronger-than-expected US GDP print.

The start of February then saw the US dollar briefly plunge to a nine-month low against the euro after a dovish 25bps interest rate hike from the Federal Reserve.

However, the ‘Greenback’ was quick to find its feet as January’s non-farm payroll release smashed expectations. Coupled with a hotterthan-forecast inflation print these revived expectations for at least two more interest rate hikes from the Fed this year, and underpinned USD demand through the first half of February.

The US dollar then extended these gains in the second half of a month as a stark rise in geopolitical risks bolstered the currency’s safehaven appeal.

The US dollar now looks well positioned to extend these gains into March as the currency is likely to be underpinned by Fed rate hike bets and souring risk appetite.