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
UK Energy Apart from announcing that there will be no further North Sea drilling licences issued, newly minted Uk Energy Minister Ed Miliband has wasted no time in greenlighting three huge new solar farms in Lincolnshire, Cambridgeshire and Suffolk. Sufficient to power 400,000 homes with an output of 1.4 GW the solar farms will cover […]
Germany The German business climate was slated to rise in July but instead it fell in terms of both current and also future expected business conditions as reflected in the IFO Index made up of manufacturing, services, trade and construction sectors as submitted by 9000 firms. Germans wishing doubtlessly that they could be as strongly […]
British Pound GBP is currently in fashion: with a record number of long positions and currently at the top of the G7 currency performance charts and after a period of being deeply unfashionable GBP is wanted-in a good way. The reasons for this are diverse: first off is the Bank of England’s caution on cutting […]