I’m ready for the question, Noel:
Dominic Raab’s last minute scramble over to Brussels this weekend left investors in great anticipation, perhaps even expectation, of a Brexit deal this week. Michel Barnier’s tweet yesterday afternoon undermined those expectations sending Sterling tumbling during the Asian open yesterday evening. The EU’s chief negotiator wrote:
Sterling crashed out of the 1.32s against the Dollar overnight, however, recovered ground throughout this afternoon. As May addressed the Commons, Sterling proved to be a choppy market to navigate, however, ultimately gained around one quarter of one percent as the PM’s optimism persuaded traders to award the Pound with value. The Euro was also hampered by the disappointing Brexit announcement on Sunday, with the European single currency losing its own battle against the Dollar and running out of steam just short of the 1.16 mark. Having unsuccessfully retested this range again this afternoon amidst a weaker Dollar, EURUSD closed the European session at 1.1590. European leaders gather in Brussels on Wednesday in a pivotal event for Brexit. Sentiment surrounding the event remains positive, with French President Macron promising in Paris this afternoon to continue “technical talks” right up to the wire. Global tension between Saudi Arabia and the US grew today as the oil titans squabbled on the political stage. Amidst a strong “risk-off” strategy, Gold rallied as the Dollar and US equities declined.
Discussion and Analysis by Charles Porter
Click Here to Subscribe to the SGM-FX Newsletter
Related Insights
Morning Brief – Data Day
Charles Porter
Thu 30 Nov 2023
Data Day Despite salient data already having been published in China and France so far this morning, we are far from finished with the deluge of data due to reach the market today. The most important of which will be those that we have signposted in earlier briefings: Eurozone and US inflation figures. Given just […]
Morning Brief – Eurozone
Humphrey Percy
Fri 1 Dec 2023
Eurozone That was a surprise: yesterday the EU announced that inflation had fallen to 2.4% which was considerably better than the 2.7% that markets had expected. Despite the ECB saying it was far too early to cut rates, the market has pencilled in the first cut for April. Before getting carried away it should be […]
Morning Brief – UK Labour market
Humphrey Percy
Wed 29 Nov 2023
UK Labour market The Bank of England yesterday broke cover to drive the message home that due to the UK’s labour market remaining tight, it was premature to start talking interest rate cuts and it was not just Governor Bailey who was calling for higher for longer interest rates but also his MEPC colleague Jonathan […]
