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
Strong USD Those punitive tariff threats – Copper 50%, Brazil 50% and Pharmaceuticals 200% had a marked effect on USD. Bizarrely, while POTUS has been conducting his self-harming measures on the USA and the USD, he sees no contradiction in maintaining that he sees USD remaining the primary world reserve currency. A total of 22 […]
Australia Falling inflation, sluggish economic growth, a strong currency, lower living standards and low productivity would normally easily add up to an interest rate cut by the central bank: not in Australia where it was widely expected that yesterday would indeed see a rate cut. That is because the Reserve Bank of Australia is worried […]
Poland June 2025 will go down as a milestone for the energy sector in Poland as it was the first month that renewable energy overtook fossil fuels as a proportion of Poland’s total energy requirements. Poland is one of the highest emitting countries only behind China, Kuwait, South Africa, and Kazakhstan and despite coal consumption […]