Summit’s Brewin’:
Following weak CPI inflation data this morning, Sterling faced an almost unrelenting headwind. Losing a value of almost 0.5% in the first 30 minutes of European trading against the Euro, the Pound found little footing from rumours seeping out of Brussels. Weak CPI data came as a surprise to traders and investors who had, only yesterday, awarded the Pound with considerable value on the back of promising wage data purporting the highest levels of wage growth since the financial crisis. Succumbing to Brexit scaremongering and uncertain economics, the Pound retreated having threatened 1.32 once again at market open. The Pound and Euro both grabbed a bid earlier this week as festering rumours of the EU’s willingness to extend the transition period into 2021 gained further credibility. A smooth Brexit that works on both sides of the Channel/North Sea is collectively better for intra-European trade, supporting both the Euro and Pound. The Dollar has gained strength today, producing a retracement on the chronic Dollar weakness that has plagued the greenback so far this week.
- GBP: Agreement in the coming days and months, say PM May. Markets question, well, which one is it?!
- EUR: Banking Union and Fiscal integration are on the table at the conference too. A progressing Union will prove positive for an ailing Euro.
- USD: Saudi-US-Turkish relations are at an interest juncture that is proving challenging for markets to manage. Risk off throughout the afternoon saw Gold, the Japanese Yen and Swiss Franc rally.
Discussion and Analysis by Charles Porter
Click Here to Subscribe to the SGM-FX Newsletter
Related Insights
Daily Brief – Gold and Silver
Humphrey Percy
Wed 4 Feb 2026
Gold and Silver Due to the vertiginous moves in both these precious metals all markets are more than usually fixated on the price action at present. Yesterday, both steadied and clawed back some of the recent losses with Gold rising almost 6% and Silver 10% to USD 4921, and USD 86.70 respectively at the time […]
Daily Brief – US Payrolls
Humphrey Percy
Mon 9 Mar 2026
US Payrolls Consensus is a wonderful feeling for market analysts and the consensus among them leading up to Friday afternoon’s release was that there would be 60,000 new jobs in the US economy announced for February. As it turned out there was a certain safety in numbers in that those analysts were all wrong when […]
Daily Brief – US Dollar
Humphrey Percy
Fri 13 Mar 2026
US Dollar Yesterday saw USD reach its highest level this year up 1.5% against a basket of major currencies. The currencies that suffered the most are from those countries that are the biggest energy importers such as the Indian Rupee and the Japanese Yen as well as the EUR and the Korean Won. We are […]
