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
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 […]
Did EURUSD miss the news? Over the weekend, the President and the Speaker of the House of Representatives reached a much-awaited deal on the US debt ceiling. The impending constraint on debt could have forced the shutdown of government departments and precluded the US government from servicing costs and existing debts, triggering a default. The […]