Left; Right; Left; Right; A-Ten-Hut!
Defence was put on the table by the United Kingdom as a bargaining chip for a post-Brexit trading relationship. The UK is one of few nations that meets its NATO spending requirements on defence when measured as a percentage of GDP. Understandably, the UK has a developed defence sector, significant even on the global stage. Given the limited defensive capacity of the collective group of EU states, the UK’s punch and permanent seat at the security council will be missed. In order to achieve post-secession trading rights within the bloc, the UK had hoped to leverage its might – quite literally. However, reports out today suggested that the EU and the UK had reached an impasse in their negotiations over post-exit defensive cooperation, undermining hopes for a wider deal. Given the uncertainty around a deal, perhaps as early as November 21st, Sterling lost value throughout the day.
Payrolls Friday in the US understandably attracted attention to the US Dollar. Observing the number of jobs created last month, the data showed an additional 250 thousand new jobs were made; topping median estimates and affording the Dollar greater value. The Dollar had begun the day on the back foot, continuing early November’s trend, however, the optimistic data restored the Dollar close to a neutral position on the day.
Discussion and Analysis by Charles Porter
Click Here to Subscribe to the SGM-FX Newsletter
US Trade War Tariffs With all markets awaiting what emanates from POTUS later today, Trump has certainly achieved one aim: getting the world’s collective attention. Increasingly desperate TV pundits have spent the past hours dragging past Trade Negotiators into the studio in an effort to get them to predict what the tariffs will look like. […]
De-Dollarization A shift away from the US Dollar with Central Bank Reserves denominated in US Dollars moving down from a high of just over 70% down to 60% in the past 20 years is note worthy but the speed of that decline makes it less striking. However there are 3 factors that are changing the […]
Pairs Trading Back in the days when I worked in Bermuda for a hedge fund, we were always seeking stocks that were overvalued and other stocks that were undervalued having analysed both sets of historical price behaviours. Normally those stocks were in the same industry but not necessarily in the same geographic region. In the […]