Daily Brief – British Pound

Humphrey Percy
Chairman and Founder
Wed 19 Jun 2024

British Pound

Somewhat in the doldrums as the market awaited this morning’s inflation figures and tomorrow’s interest rate decision. Truth be told, it is the inflation figure that is keenly awaited rather than the rate decision which is not expected to result in any move by the Bank of England.

GBP/USD 1.2680.

Reform UK

Listening to Leader Nigel Farage present his Contract with Voters rather than a Manifesto like everyone else has been an underwhelming experience given that his plans appear at first pass to be unrealistic and his soundbites trite at best. However look a little more closely at his ever present grin and one realises that the content is irrelevant, Reform with NF at the helm have put clear water between themselves and the two main parties. While it may not be sufficient to win many seats, what it will do is cement Nigel Farage firmly in the consciousness of voting UK.

GBP/JPY 200.55.


After a big push towards the 2030 target of covering 81% of Spain’s electricity needs with renewables, the landscape of Spain has changed radically with the construction of huge wind farms. Spain is now only second to Sweden when it comes to renewable energy infrastructure within the EU. The snag is that Spain’s consumption of electricity has been miscalculated and it has actually declined in the past post Pandemic years. That gives rise to new opportunities: firstly the cost of electricity at times of the day is ultra low and on occasion is negative ie consumers are paid to take electricity; secondly a new industry challenge of what to do with that surplus electricity gives rise to the need to store it which should give a boost to the battery industry. So while Spain and Castile looks less like the landscape that Don Quixote would recognise as he tilted at windmills, the country is well on the way to meeting that renewable energy target.

GBP/EUR 1.1832.

EU Commission President

In the same way that European football is characterised by a series of matches followed by a final of 90 minutes where Germany traditionally emerge as the victors, the ongoing haggling or divvying up of the EU top jobs is taking place. When the smoke clears expect the inevitability of incumbent Ursula von der Leyen despite having recused herself from some of the decisive dinner discussions to be returned as the new President of the EU Commission. Job done and on to the next rubber chicken offensive.

EUR/JPY 169.49.

It Ain’t Me Babe

This day in 2020 Robert Zimmerman aka Bob Dylan notched up yet another first when he released his 39th studio album Rough and Rowdy Ways which meant he became the first and only artist to have albums in the Top 40 for 7 decades. David Bowie described his voice as sounding like “sand and glue” but that did not seem to hold him up. Respect.

Go away from my window
Leave at your own chosen speed
I’m not the one you want, babe
I’m not the one you need

You say you’re lookin’ for someone
Who’s never weak but always strong
To protect you and defend you
Whether you are right or wrong
Someone to open each and every door
But it ain’t me, babe
No, no, no, it ain’t me, babe
It ain’t me you’re lookin’ for, babe Go lightly from the ledge, babe
Go lightly on the ground
I’m not the one you want, babe
I will only let you down……

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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