Brexit Bears:
The Pound continued to dive during Friday’s US session, with the Pound trading just shy of 0.89 pence per Euro. As leaders of both major political parties in the UK participated in televised debates, further light was elucidated upon the Brexit deal. Around midday, Sterling took a considerable dive through, momentarily dipping through 1.12 within GBPEUR and even breaking through 1.28 against the US Dollar. The dip coincided with news reports that Spain was dissatisfied with the incumbent Brexit deal, believing it to be against the domestic interests of Spain. Sterling traders have shaved value off of the Pound since the Brexit deal emerged alongside a flurry of cabinet resignations. Last week’s bearish Sterling tilt has been precipitated by concerns over May’s domestic political stability. However, with ratification of any deal within the European Council being drawn into question as well, the Pound continued to suffer. Within cable, the Pound fell by approximately 0.65% within a matter of minutes. The Rand weakened following a strong start this morning amidst a combination of Dollar strength and further fiscal concerns. Domestic fiscal pressures compiled as the IMF warned that South Africa’s next budget should include debt limit in order to shore up support for its underperforming domestic soft debt. Volatility throughout the global economy continues to remain elevated with the VIX holding onto a 20-handle.
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 – US Dollar
Humphrey Percy
Wed 18 Jun 2025
US Dollar All the talk of the USD having had its day may be gaining in credence every day that goes by with the POTUS and his Administration seemingly determined to dismantle the post WW2 global currency order and depreciate the USD, but most people operate in a much shorter timeframe than the time it […]
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 […]
