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
Eurozone That was a surprise: yesterday the EU announced that inflation had fallen to 2.4% which was considerably better than the 2.7% that markets had expected. Despite the ECB saying it was far too early to cut rates, the market has pencilled in the first cut for April. Before getting carried away it should be […]
Data Day Despite salient data already having been published in China and France so far this morning, we are far from finished with the deluge of data due to reach the market today. The most important of which will be those that we have signposted in earlier briefings: Eurozone and US inflation figures. Given just […]
UK Labour market The Bank of England yesterday broke cover to drive the message home that due to the UK’s labour market remaining tight, it was premature to start talking interest rate cuts and it was not just Governor Bailey who was calling for higher for longer interest rates but also his MEPC colleague Jonathan […]