Mmm… Well… What an interesting day for global FX markets. The day kicked off with the Court of Justice of the European Union confirming the opinion expressed by the Advocate General that Brexit is indeed reversable. Article 50 can be unilaterally reversed by the United Kingdom should it choose to do so. Despite confirming a greater breadth of possible options available to Britain as it negotiates its potential secession from the Union, the rest of the day left the Pound bruised and battered. The Pound has fallen to 18-month lows as the Prime Minister announced to Parliament this afternoon that the Brexit vote would face a considerable setback. After an emergency cabinet meeting at 11:30 this morning, concerns around May’s capacity to push through the vote through the Commons was confirmed, precipitating a spiral in underlying UK markets. The FTSE 100 index simultaneously slipped, led by tumbling financial equities. The headline index closed the day down 0.8% down, confirming investors’ increasing lack of confidence in British investments through this tumultuous time. Concerns surrounding the Indian central bank, volatility and consequent risk-off sentiment offered a great footing for the US Dollar to appreciate. Emerging markets unsurprisingly endured the wrath of animal spirits.
Today’s Global Market:
Discussion and Analysis by Charles Porter
Milan, Italy The City of Milan has a late night noise problem and so it has acted unilaterally to resolve it-Italian style. A ban on the sale of take away food including ice cream and pizza after midnight is being imposed to protect the “peace and health of residents.” Here in the UK late night […]
British Pound Reports that the UK may cut its interest rates before the USA cut their interest rates were the final straw this past week for Sterling. A slew of less than helpful inflation, employment and finally retail sales saw GBP weaker , but then the suggestion that with the background of that less than […]
US Dollar Surging on a strong US economy together with further geopolitical tensions in the past week, USD is at its strongest versus EUR this year and came within a whisker of breaking through 1.06 in yesterday’s trading. Against the Japanese Yen USD was 154.55 which caused Japanese Finance Minister Shunichi Suzuki to break cover […]