TGIF:
This week has closed with a bang. A Federal Open Market Committee decision last night, more Brexit news than you can shake a stick at and a Euro that just can’t make up its mind all added to the confusion. This morning, DUP leader Arlene Foster kicked Sterling markets into a spiral with the Pound soon trading below 1.30 against the Dollar. Pushing the losses within cable to a little over 1.5 percent in 48 hours, the leader of the Northern Irish party said that May could not count on her party’s support on the incumbent Brexit deal. The Northern Irish politician slammed May’s Brexit plan, as a move against the Union and a danger to the stability of the United Kingdom. The move was less pronounced against an already subdued Euro, allowing EURGBP to continue its descent through 0.87. The Fed’s interest rate decision last night left the US Dollar virtually unchanged. Ahead of the event, futures markets attached an 80% probability of a 25-basis point interest rate hike at their December meeting. Following the event, the situation and market expectations remained almost entirely unchanged. Unsurprisingly, therefore, treasury yields were little changed with the US and Asian session last night leaving the value of the US Dollar unchanged. At market open in Europe this morning, there was a different story, with the greenback closing some 0.4% stronger than its rate at market open this morning. Moving into the weekend, any development on Brexit will continue to determine the Pound’s value.
Discussion and Analysis by Charles Porter
Click Here to Subscribe to the SGM-FX Newsletter
Related Insights
Daily Brief – Pressure build on the Fed
Charles Porter
Tue 17 Jun 2025
Pressure builds on the Fed On the face of it, you might think that the Fed will be in an easier position tomorrow than it was at its last decision in May. There still remains a lot of pressure from the White House on the Fed to cut rates. However, baring catastrophe in today’s session, […]
Daily Brief – British pound
Humphrey Percy
Fri 13 Jun 2025
British pound Sterling finds itself in the limelight and trading at its recent highs as somewhat improbably a couple of bolder market commentators have suggested the UK will benefit as a result of the disaffection with the USA and the USD at present. Those commentators have obviously not been following the commentary about UK Chancellor […]
Daily Brief – Oil Supply
Humphrey Percy
Mon 16 Jun 2025
Oil Supply With Friday’s rocketing up in the oil price of 12% to $78, the question is whether that is it and we have just seen a re-set or whether this is the first staging post in a much larger increase. That, of course, depends on the unfolding Israel-Iran attacks and whether that conflict spreads […]
