The direction to markets today has been clear: Brexit is looking good and the Dollar’s rivals are back. With the Pound and the Euro both respectively seeing enormous bids on the back of Brexit progress, the Dollar has lost some of the traction that has made it the trade of 2018. The Irish government has spoken officially, giving weight and credibility to May’s proposed solution to the Irish border; perhaps the greatest sticking point in negotiations besides the bill! The Republic suggested it would allow a complete customs union between the EU and the UK, affording May’s extant plans greater credibility. The Pound rallied magnificently, breaking through 1.13 against an admirably performing Euro and confidently surpassing 1.30 against an ailing Dollar. Ahead of a pivotal EU summit this month, Ireland’s concession is important, removing one of the obstacles that the UK could face before the European Council. Emerging market sell offs are prevalent within equity markets, yet downward pressure is still evident within the Rand and the Lira. Non-farm payroll data is released tomorrow afternoon, with all eyes on the performance of the domestic US economy.
Since Market Open:
Discussion and Analysis by Charles Porter
UK House Prices Unsurprisingly given the 12 interest rate rises and cost of living squeeze in the UK, the housing market has seen its largest year on year fall since 2009 when everyone was suffering from the global financial crisis. In the year to April the UK housing market has dropped by 3.4% with the […]
Opportunity for a weaker Dollar The passing of month-end allows markets an opportunity to reassess currency valuations. Despite a cooling off within the Dollar as forecasted following the agreement between the White House and Kevin McCarthy, month end flows yesterday showed favourable conditions for a short-term Dollar resurgence. The beginning of June coincided with headlines […]
Turkish Lira While President Erdogan removed the uncertainty overhanging the Turkish market by winning the election in the run off over the weekend, the news served to cement the certainty that nothing much was likely to change with respect to Turkish economic policy or indeed the subservient role of the Central Bank of Turkey to […]