Daily Brief – US Dollar

US Dollar

One question at least has been answered by the crisis in the Gulf: USD is still the safe haven currency of choice. The Dollar Index rose 1% on Monday and again yesterday, reflecting the attributes of the Dollar market which as we have recently written are not enjoyed by other potential rival currencies such as the Japanese Yen and the EUR, namely the depth and strength of the US markets. So, while the debate will continue on whether the supremacy of the USD will remain in the long term, in today’s markets in these times of war conditions between the USA and Iran and the attendant fears for fall out in the wider Gulf region, USD remains the currency of choice.

EUR/USD 1.1595.

Digital EUR

In principle, the EU Parliament supports the introduction of the digital EUR. So far so good. However, a fierce debate has deteriorated into a voting block in the shape of a veto in any further progress on the introduction of the new parallel payment mechanism over whether it should be Online or Offline. Online means connected to the internet the same as credit card usage. Offline means that an internet connection is not required with value stored locally on a device with payment being transferred directly between devices so the same as physical cash such as paying with a banknote. On top of that impasse, proponents of the digital EUR claim that it will challenge Visa and Mastercard in payments despite the probability of a limit per user of EUR 3000. The idea of the size of the limit is to prevent users replacing bank deposits with Digital EUR i.e. using it as a store of value rather than simply to make payments. Given all this, the introduction timetable for the Digital EUR of 2029 can confidently be dismissed.

EUR/GBP 0.8720.

Canadian Dollar

The Loonie’s behaviour this week reflects what we have written above under US Dollar: despite Oil having appreciated 6% this week, CAD has actually fallen by 0.4% which is contrary to what one might expect given that CAD is regarded as a commodity currency with a preponderance to reflect the oil price. The CAD is not regarded as a safe haven currency.

USD/CAD 1.3696.

Superhero

Despite the drain of entrepreneurial talent from the UK, it is cheering to see that there is still some spark in the get on your bike sector: a supermarket worker visited the cinema and decided to wear his Spiderman outfit-natch – and when someone encouraged him to do a backflip, he did and received a round of applause. Now he has hung up his supermarket overalls and wears the Spiderman kit full time having turned it into a business and, is enjoying such success that he is looking to recruit more impersonators. So, if you need to hire Superman, Hulk, Captain Marvel, or of course Spiderman, get in touch with Nate Frindall – he lives, like all super heroes, in Dorking, Surrey.

GBP/USD 1.3325.

Shine

This day in 2007 Manchester boy band Take That for the 10^th time saw their new song Shine go to Number One. It also went on to win the Best Single category at the Brit Awards. If you are wondering why 19 years on that tune is persistently and annoyingly reminding you of something you can’t quite put your finger on, think no further, it was used by Morrisons Supermarket to re-launch their brand at that time. Take That!

You, you’re such a big star to me
You’re everything I wanna be
But you’re stuck in a hole
And I want you to get out

I don’t know what there is to see
But I know it’s time for you to leave
We’re all just pushing along

Trying to figure it out, out, out
All your anticipation pulls you down
When you can have it all
You can have it all

So come on
So come on, get it on
I don’t know what you’re waiting for
Your time is coming, don’t be late, hey, hey

So come on
See the light on your face
Let it shine, just let it shine
Let it shine

Discussion and Analysis by Humphrey Percy, Chairman and Founder

Click Here to Subscribe to the SGM-FX Newsletter