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
Will they, won’t they It’s one week to the day until the next Bank of England decision. It will prove critical to the value of GBP and perhaps prove to be a defining feature of the currency market for at least the first quarter of this calendar year. Bank rate in the UK currently sits […]
Inflation With markets as ever getting ahead of themselves by many having decided that the inflation peak is a yesterday thing, there is a dawning realisation that with the current levels of USA 6.5%, 9.2% UK and 10.4% EU as at Dec 2022, inflation is not only well above target of 2% but is still […]
UK Government Borrowing By Numbers Many people have a disconnect when it comes to linking government finances with their own-bring on the idea of teaching finance as part of the school curriculum-however, yesterday’s release showing the government borrowing figures fall into the category of both attention grabbing but so eye watering that many will likely […]