Mid-term Day:
US voters travelled to the polls today with the political composition of the United States on the line. The mid-term elections are closing in on their twilight with seats in Congress’ House of Representatives and the Senate up for grabs. Throughout the day it has grown increasingly likely that votes in the House of Representatives have been won over by the Democrats with voting for the Senate favouring the incumbent Republican Party. The Dollar has lost some ground throughout the day to an appreciating Pound Sterling and a firm Euro. Minute by minute, the voting composition of the US polity becomes clearer with an inability to pass laws within the Senate pushing investors to liquidate holdings in a more exposed and politically uncertain US economy. The Pound has received good support throughout the day as markets asses the progress of May’s Cabinet meeting today. May has met with her cabinet to tell more opinionated leavers and remainers alike to moderate their views in the name of Brexit progress. At this stage, no news is good news as quietism by May’s ministerial colleagues is thought to signify tacit agreement with the Prime Minster’s Brexit plan. Unsurprisingly, therefore, the Pound has continued to appreciate step by step throughout the day. Italy continues to create an obstacle on the European front with the Commission and Italian leadership at loggerheads.
Discussion and Analysis by Charles Porter
Japan Some of the market’s Great Minds spent yesterday afternoon debating whether Japan could get away with raising interest rates at the same time as the Central Banks from the other major markets are starting to cut their interest rates. In short, Japan can and probably will, since its monetary policy has been effectively in […]
Rather you than me, Christine As we and the market alike have been speaking about recently, Eurozone rates are all the rage. As we highlighted yesterday, the path for rate cuts next year has already captivated the market with easing being forecasted as early as Q1 2024. As we approach the Christmas period, we must […]
European Interest Rates More momentum on rate cuts in the Eurozone as expectations grew for cuts starting in March and totalling 140bps in 2024. Equally in the UK cuts of 130bps starting in June are being pencilled in to market calendars. What this means is that GBP/EUR is looking more than especially good value at […]