Daily Brief – British Pound

British Pound

In case you missed the beginning of this month, GBP had a moment in the sun but has since slipped back. Without overthinking it, we have GDP figures on Thursday this week which will show how productive the UK is and Employment figures next week which will be the key indicator for whether the Monetary Policy Committee will cut interest rates. Back to GBP, the main reason for Sterling giving up ground is USD strength in the past few trading sessions rather than GBP weakness. Given the near conviction of almost everyone that PM Starmer is not likely to remain long in post, Sterling for the moment at least is holding up surprisingly well given the lack of support for the Prime Minister together with the lack of clarity of what happens after the UK Local Elections in May.

GBP/USD 1.3406.

US Employment

Aggressive POTUS policies on immigration, trade tariffs biting, economic uncertainty leading to a lack of employer confidence feeding through to a reluctance to hire: these are the influences swirling around US employment stats. Steady but not the economic miracle claimed by the Commander in Chief: unemployment fell in November to 4.4% but new jobs on offer did not reflect a strong economy. On the plus side, that means that existing employees are working harder unless of course it’s all down to AI.

EUR/USD 1.1629.

Korean Won

Insomniac KRW FX traders step forward: as from July this year South Korea has greenlit 24hr Won trading in a bid to win a place for Korea in the MSCI Index. This is all part of joined up thinking by Korea (other countries closer to home might take note) given the Kospi stock index gaining 76% last year and taking the prize for best performing stock market.

EUR/GBP 0.8635.

Humanoids

In the first reported case of robo bullying, a Sky reporter was seen punching and kicking a diminutive humanoid in a boxing ring in Las Vegas. The bout was arranged by Chinese robo manufacturer Unitree which challenged the reporter to take on its robot. The humanoid did well in punching the reporter but Unitree had not bargained on him kicking and tripping which meant the robot was down and out. Unlikely to catch on as a spectator sport.

EUR/JPY 183.87.

You Drive Me Crazy

This one has it all: the 80’s Welsh, invariably denim suited singer crooner, Shakin’ Stevens hit a photographer with his microphone stand in a bar in Ballymena, Ireland and was found guilty this day in 2010. Obviously SS had forgotten the basics: publicity. In fact any publicity for a past his sell by date 80’s singer doing a revival 30 years after he peaked in an Irish bar where a photographer actually wanted to take his photo should have been met with enthusiasm rather than violence. The judge shared that view and fined him GBP 479.

You know, baby, when you’re in my arms
I can feel your lovin’ magic charms
You drive me crazy
You drive me crazy

And when I’m lookin’ in those big blue eyes
I start a-floatin’ ’round in paradise
You drive me crazy
You drive me crazy

Heaven must’ve sent you down
Down for you to give me a thrill
Every time you touch me
Every time you hold me
My heart starts speedin’ like a train on a track

I love you baby and it’s plain to see
I love you honey, it was meant to be
You drive me crazy
You drive me crazy, oh

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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