As Brexit dominates the Pound, economics and monetary policy dominates the Dollar, and political scandal dominates the Rand, FX markets may start sounding like a broken record. However, one should remain very much aware that this repetition and almost paradigmatic taxonomy of certain currencies is more fragile than it may seem. Even the slightest amelioration or deterioration of the current situation could have phenomenal or catastrophic consequences for the respective currency. The Dollar has been the unquestionable winner so far this week as markets reprice their approach to the Chairmanship of Jay Powell. Sterling meanwhile has been caught in the doldrums, threatened by a Dollar that currently trades at 1.3750 against the Pound and 1.1280 against the Euro. The Rand has weakened off mildly following a disappointing and somewhat frustrating cabinet reshuffle. The Rand now trades close to 16.40 against the Pound, 11.92 against the Dollar, whilst clinging on just above 14.50 against the Euro.
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Daily Brief – A short lived short squeeze?
Charles Porter
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A short lived short squeeze? Sterling is undoubtedly benefitting from a short squeeze. Traders on net had increased positions that benefit from Sterling’s demise leading into the budget. Depending upon the participant’s persuasion, that could have meant gaining an outright short exposure to the currency or, in a more mild form, trimming any or all […]
Daily Brief – Sterling slides
Charles Porter
Thu 18 Dec 2025
Sterling slides Sterling took a leg lower ahead of the European open yesterday. Despite some tentative signs of recovery, GBP was still unable to claw back losses incurred during yesterday’s session. Before we cover the cause and implications of yesterday’s stumble amongst GBP crosses, let’s look at why the Pound was set up for a […]
Daily Brief – But does it mean anything for FX?
Charles Porter
Tue 6 Jan 2026
But does it mean anything for FX? The story of the week also therefore makes it the story of the year so far. The United States’ capture of Venezuelan President Maduro is the hot topic, but does it hold any material impact to markets? Well, there was certainly some significant moves in FX during yesterday’s […]
