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 – 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 […]
