Santa Claus is coming to Pound:
Yesterday afternoon’s pessimism surrounding the capacity for Theresa May to negotiate any concessions or adjustments in Europe faded into concerns hinting towards the twilight of her premiership itself, the Pound took a tumble. The New York session saw an uncharacteristically large 0.35% wiped off of the value of the Pound. The trend continued up until May’s speech outside of number 10 this morning. Despite a downbeat and defeated expression, the Prime Minister’s battle-worthy words spurred traders and investors in the Pound to believe she will give it her all to maintain the stability within the UK government. Promising to give her all, the Pound began to appreciate, recovering the ground that the New York and Asian sessions had deprived the UK currency of. As reports and testimonies of Conservative MPs came flooding in over Twitter, letter and the rumour mill, the Pound caught one of its biggest bids of a rapidly fading 2018. Once the necessary survival threshold of 168 Conservative MPs had been recorded, the Pound freed itself from the day’s headwind, closing some 0.9% higher on the day. With strengthening risk appetite, the US Dollar lost some of the defensive demand that has supported it so well over the past weeks.
Discussion and Analysis by Charles Porter
Click Here to Subscribe to the SGM-FX Newsletter
Related Insights
Daily Brief – Calling time on Swissy
Charles Porter
Tue 14 Oct 2025
Calling time on Swissy Switzerland’s Franc may be destined to faulter under its own weight. Despite rock bottom interest rates, the Swiss Franc has been a significant beneficiary of the post-Covid and Trump2 world. EURCHF, a key barometer of European risk, shows some 20-cents worth of Swiss rally post-Covid. The pair has dropped from well […]
Daily Brief – A look ahead
Charles Porter
Thu 9 Oct 2025
A look ahead The UK Pound continues to be influenced by the gilt market and fiscal concerns. Sterling has been a very expensive short this year, contributing to its relative outperformance. In fact, the few episodes of sustained weakness we have seen tended to have either coincided with a global risk-off turn or a sharp […]
Daily Brief – Jobs Week
Charles Porter
Tue 30 Sep 2025
Jobs Week The labour market has been the key to unlocking a weaker Dollar. Despite moderating inflation and lacklustre economic activity in the US, it had been the labour market that kept the Fed wanting rates held in restrictive territory. As cracks began to appear in the labour market through revisions to prior data and […]
