A Remembrance Sunday to Forget:
The gravitas of yesterday’s Remembrance services were not enough to spare the fortune of the Pound throughout the Asian session last night and into this morning’s European session. Following another disappointing week for Brexit last week, CFTC data recorded yet another surge in net short Sterling positions, reflecting growing concerns about the progress of negotiations. On Sunday, Democratic Unionist Leader Arlene Foster reaffirmed her party’s intention to vote against a Brexit deal resembling May’s incumbent Chequers-based plan. This news led to an impression at market open of Brexit stagnation and domestic political instability as the impression of Theresa May’s minority Conservative government deteriorated. The rally in Brent Crude and WTI Oil at market open this morning gave yet more support to an already strong US Dollar. EURUSD continued to rally down below 1.1250; reaching the lowest rate in over a year. Once again on Sunday, the Italian Prime Minister reaffirmed the incumbent coalition government to remain within the Euro. However, the commitment gave yet another reminder of the risk that Italy poses to the fiscal stability of the Eurozone and the monetary governance of the ECB. For yet another consecutive day, the Euro has fallen.
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 […]