The Pound has recovered from yesterday’s woes. However, a fragile 0.2% appreciation on the day offers Sterling markets little commiseration with EURGBP and GBPUSD both trading slightly below the mid-point of their medium-term range. The Pound received a good bid following a confirmation from The Times that Michael Gove will not resign from May’s Cabinet where he presently holds the position of Secretary of State for Environment, Food, and Rural Affairs. Following a flurry of seven resignations, the positive affirmation from one of the co-heads of the Vote Leave campaign has allowed the Pound to enjoy a small degree of breathing room, grabbing back 4/10th of one cent against the US Dollar and the Euro since the European market open. The European Central Bank President Mario Draghi spoke this morning at his last (annual) European Banking Congress in Frankfurt. The board’s comments afforded some value to the single currency due to their continued isolation from the fiscal crisis in Italy and projection towards 2019 policy normalisation steps. The US Dollar has faced a headwind overnight as an agreement or deal between China and the United States during this month’s G20 summit looked increasingly unlikely. The Dollar fell on these remarks, deflating the optimism that the US president had shown markets earlier this month.
Today’s Global Market:
Discussion and Analysis by Charles Porter
Click Here to Subscribe to the SGM-FX Newsletter
UK Wages Bank of England Governor Andrew Bailey yesterday warned of the pressure on wages that are threatening to lead to a wage price spiral as the effects of inflation on the cost of living together with the 12 consecutive interest rate rises that consumers have experienced. The market has not enjoyed the poor inflation […]
UK inflation – June hike worthy? Yesterday’s inflation data surprised markets. The data was released slightly ahead of European core trading hours. The lighter liquidity available at this time could have resulted in the short-term spike towards 1.2450 on cable and around half a cent to the mid-1.15s within GBPEUR. However, you could, and perhaps […]
International Monetary Fund With no sign of insouciance despite its 180 degree turn in a two month timeframe, the IMF yesterday reversed its downbeat if not disastrous forecasts for the UK and stated the UK is no longer heading for a recession and nor is it the weakest member of the G7 when it comes […]