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
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 […]
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 […]
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 […]