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
Morning Brief – Will they, won’t they
Charles Porter
Thu 26 Jan 2023
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 […]
Morning Brief – Inflation
Humphrey Percy
Fri 27 Jan 2023
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 […]
Morning Brief – UK Government Borrowing By Numbers
Humphrey Percy
Wed 25 Jan 2023
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 […]
