Morning Brief – British Pound

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 16^th 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

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