MAYDAY:
The stubborn and perseverant Theresa May has travelled to the Netherlands today in order to meet the Dutch Prime Minister and Brexit ally, Mark Rutte. Thought to have continually supported the United Kingdom and the Prime Minister within the European Council throughout the Brexit process, May was looking to foster support ahead of Thursday’s EU summit. Whilst her cabinet and closest aids continue to support her efforts in Westminster, May has continued her not-so-grand European closing in on Brussels for the final push. Reports on the malleability surrounding Brexit concessions this week differ greatly. Juncker has reportedly ruled out any flexibility even at the margin of the text:
However, never underestimate the value and power of a simple clarification! The 585-page Brexit treaty document can, at first impression, seem expansive, daunting and comprehensive, however, don’t be fooled; so much is still left to interpretation! Should the EU offer May marginal improvements in the deal within the skeletal framework already agreed upon at the European level, Sterling could correct itself considerably.
The Dollar came under pressure this morning as President Trump once again turned against his own Federal Reserve. However, as further risk-off positioning manipulated the market environment, these concerns faded away to leave the US Dollar stronger on the day.
Discussion and Analysis by Charles Porter
A revised 2024 The Dollar opens stronger this morning following the Federal Reserve’s decision last night. The decision confirmed interest rates were to stay on hold following this meeting. As we have highlighted following previous decisions, the forward guidance offered by the Chair Jay Powell was once again underwhelming. However, the Dollar’s bid this morning […]
OECD Those fun loving folk at the Organisation for Economic and Cultural Development are at it again by forecasting that the UK will in 2023 stand at the very top of the G7 for….our rate of inflation at 7.2% which is a great deal more than the promised rate by the UK Government for the […]
GBP While the Bank of England’s decision to pause on raising rates by the narrowest of margins with voting 5-4, that resulted in GBP being sold sharply which reflects the market’s view that while inflation at 6.7% looked better than expected yesterday, the effect of higher oil prices and petrol and diesel at the pumps […]