Unaccustomed Union:
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
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 […]
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 […]
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 […]