The Pound has recovered from yesterday’s woes. However, a fragile 0.2% appreciation on the day offers Sterling markets little commiseration with EURGBP and GBPUSD both trading slightly below the mid-point of their medium-term range. The Pound received a good bid following a confirmation from The Times that Michael Gove will not resign from May’s Cabinet where he presently holds the position of Secretary of State for Environment, Food, and Rural Affairs. Following a flurry of seven resignations, the positive affirmation from one of the co-heads of the Vote Leave campaign has allowed the Pound to enjoy a small degree of breathing room, grabbing back 4/10th of one cent against the US Dollar and the Euro since the European market open. The European Central Bank President Mario Draghi spoke this morning at his last (annual) European Banking Congress in Frankfurt. The board’s comments afforded some value to the single currency due to their continued isolation from the fiscal crisis in Italy and projection towards 2019 policy normalisation steps. The US Dollar has faced a headwind overnight as an agreement or deal between China and the United States during this month’s G20 summit looked increasingly unlikely. The Dollar fell on these remarks, deflating the optimism that the US president had shown markets earlier this month.
Today’s Global Market:
Discussion and Analysis by Charles Porter
Germany and the EU The Germany Supply Chain Act came into force in 2023 as a result of Germans wanting to do something good for employees in other countries in particular with respect to human rights and environmental issues. So far so good. But a combination of cost and bureaucracy overlaid with the difficulty of […]
US Dollar With the US Election just over 6 months away it is time to think about the implications for USD with a new President. In case you have missed it Trump plans In the event he wins to devalue USD to boost US exports as part of his MAGA philosophy. As we know ex […]
Japanese Yen With JPY at a new 34 year low versus EUR, the market is set for an ambush by the Bank of Japan if it acts today at the end of their Policy Meeting to support the Yen. The reason that the market is susceptible is because it has convinced itself that the BoJ […]