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 weaker Dollar: Trump vs. Powell The Dollar continued to lose ground yesterday as the truce between Israel and Iran appeared to continue to hold. There has been a noticeable return to focus upon macro and monetary influences in major currency pairs. Yesterday, Fed Chair Jay Powell provided his semi-annual monetary policy report before the […]
Whiplash A highly volatile start to yesterday’s trading session saw a flight to safety in markets. Despite the Dollar having lost much of its appeal as a safe haven lately, there was still an identifiable USD bid prior to and during the European open. We have identified recently how markets have clearly differentiated between general […]
Top Trumps Geopolitical risks are outweighing macroeconomic fundamentals in today’s markets. We can see this very clearly from the muted reactions in price being generated from major macro events including data and interest rate decisions. The same holds true of the Fed’s interest rate decision where markets barely blinked at a Fed that had changed […]