Once; Twice; Four times a winner!
The Pound was rewarded overnight by traders in the New York and Asian sessions, pushing the UK’s currency back towards levels not seen for some 20 months. Today’s session initially drew limited support for the Pound given the fresh resistance levels that the UK currency approached overnight. Positively, this afternoon, a headline crossed terminals that Julian Smith, the British government’s enforcer, had informed parliamentarians that the Brexit agreement can be reopened if an agreement is created to produce legally-binding changes to the Irish backstop. The news decreased the headwind that the UK government would face in improving the extant Brexit deal. Base case outcomes were therefore revised upwards slightly, allowing the Pound to enjoy a renewed bid and finish four days out of the five this week comfortably in the Green. The US Dollar has struggled today, losing close to 0.5% on the day. The reason for the fall is the Federal Reserve which comes into focus once again next week. The Reserve will publish its next interest rate decision on Wednesday evening next week with the Reserve widely expected not to raise rates. The pressure on US interest rates in late-cycle economic growth is allowing the Dollar to slide against its international counterparts.
Discussion and Analysis by Charles Porter
Click Here to Subscribe to the SGM-FX Newsletter
Related Insights
Daily Brief – Fade America
Charles Porter
Thu 26 Feb 2026
Fade America There have been times during Trump’s second term that have had markets and financial commentators alike calling for an era of ‘sell-America’. Sell-America is the notion describing a scenario in which investor sentiment sours towards the US so much so that valuations across US assets decline. This is a unique scenario because many […]
Daily Brief – An upset in the minutes
Charles Porter
Thu 19 Feb 2026
An upset in the minutes Minutes of the Federal Reserve’s January meeting were published yesterday evening. As you may tell from the market reaction, the contents of such minutes were far from in line with market consensus. If you cast your mind back to January 28th, the FOMC voted 10-2 to keep rates on hold. […]
Daily Brief – How do we really feel about tariffs?
Charles Porter
Tue 24 Feb 2026
How do we really feel about tariffs? As we wrote yesterday, financial news outlets erupted as if it were Christmas come early upon the initial suggestions that the Supreme Court would likely find Trump’s tariffs contrary to law. Upon the realisation later on during the US session that this expectation had become reality, headlines doubled […]
