British Pound
A better day for GBP as Sterling clawed back almost half of its losses from earlier in the week. Following Federal Reserve Chair Powell’s comments on higher for longer US interest rates on Tuesday, the USD strengthened sharply at the expense of all currencies and was then evidenced by a sickly looking GBP. GBP/USD 1.1920.
US Jobless Claims
With yesterday’s Weekly Jobless Claims in the US coming in at 211,000 pretty much as expected, markets transferred their attention to today’s Payroll Number. However the market is mindful that yesterday’s release was the highest since October 2022. 2 Year US Treasury Bond yields dropped 9bps to 4.98% on fears that the labour market is showing an early sign of weakness. In reality, the data is unclear. EUR/USD 1.0570.
BMW
A shot in the arm for the beleaguered British car industry (for a change) with news yesterday that BMW is to invest GBP600 million in its Mini plant in Oxford in anticipation for the future build of electric powered Minis. All Minis will be electric by 2030. GBP/EUR 1.1270.
La Tour d’Argent
Those who have not had the good fortune to dine at this Michelin starred Paris restaurant offering one of the best views on Earth should stick it on their bucket list. Opened in 1582 as an inn offering accommodation to travelling noblemen and given its own crest by Henry IV, its claim to fame is that it was the first place in 16th century France that provided forks to eat with. Presumably the clientele were using their forks for grooming facial hair prior to this gastronomic epiphany.
A Taste of Honey
Recently departed and much mourned Herb Alpert and the Tijuana Brass together with some members of the band, Wrecking Crew best known for backing the Beach Boys recorded this hit which spent 5 weeks at Number One before going on to win a Grammy and become a legendary standard;
Winds may blow over the icy sea
I’ll take with me the warmth of thee
A taste of honey
A taste much sweeter than wine
I will return
I’ll return
I’ll come back for the honey and you
I’ll leave behind my heart to wear
And may it e’er remind you of
A taste of honey
A taste much sweeter than wine
I will return
I’ll return
I’ll come back for the honey and you
He ne’er came back to his love so fair
And so she died dreaming of his kiss
His kiss of honey
A taste more bitter than wine
I will return
I will return
I’ll come back for the honey and you I’ll come back for the honey and you
Have A Great Weekend!
Discussion and Analysis by Humphrey Percy, Chairman and Founder
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 […]
Too soon to call USD lower Those following the US Dollar’s performance in the markets would have noted a recent downturn accelerating as this week has progressed. There have been two factors driving this sell-off but it is far from certain that either may endure long enough to push the Dollar index back to its […]