A public holiday today Stateside provides welcome relieft for the Greenback. The USD has been confirmed as the worst performing G10 currency in the first 6 months of the year according to Rabobank and is threatening to continue its poor performance into the back end of 2017.
Prima facie, one may place the blame on the Dollar decline solely with President Trump however looking at the hard data the economy simply hasn’t picked up as much as intially expected.
Central to this is the now increased market scepticism as to weather the Fed willl be able to announce a third rate hike by the end of the year.
Reversal out of long USD positions is also a function of an improvement in European fundamentals [i.e. political risk] which have driven money back accross the Atlantic. This has seen EUR trade to its highest since May 2016 against the Dollar and is predicted to end the year at 1.1700.
Milan, Italy The City of Milan has a late night noise problem and so it has acted unilaterally to resolve it-Italian style. A ban on the sale of take away food including ice cream and pizza after midnight is being imposed to protect the “peace and health of residents.” Here in the UK late night […]
Coal tinted spectacles If you had to boil down the global economy into one category from the options of bad/fair/good, what would you choose? We all experience the economy vastly differently down to an infinite number of variables. But by and large the current phase we are in, characterised by strong global growth rates, record […]
British Pound Reports that the UK may cut its interest rates before the USA cut their interest rates were the final straw this past week for Sterling. A slew of less than helpful inflation, employment and finally retail sales saw GBP weaker , but then the suggestion that with the background of that less than […]