Morning Brief – US Dollar

US Dollar

Surging on a strong US economy together with further geopolitical tensions in the past week, USD is at its strongest versus EUR this year and came within a whisker of breaking through 1.06 in yesterday’s trading. Against the Japanese Yen USD was 154.55 which caused Japanese Finance Minister Shunichi Suzuki to break cover and say that they were watching things closely and would make a thorough response if they deemed it necessary. An inexpensive way to put a cap on further Yen weakness for the moment but not a solution as the market is not buying it.
EUR/USD 1.0640.

UK Unemployment

With the headline rate of unemployment rising from 3.9% to 4.2% the UK job market is definitely cooling although there is some uncertainty about the veracity of the data-why?-which is urging some to advise caution on drawing that conclusion. Could it be that following the highly critical report about the Bank of England’s forecasting, that there is a siege mentality creeping into those who practice the dismal science and make economic forecasts? GBP wallowing versus USD but firm against the EUR.
GBP/EUR 1.1698.

Australian Dollar

As is known and referred to above USD is strong against all currencies including the Aussie Dollar. This has prompted one Australian reporter in a measure of desperation to write a story about how the AUD is strong against….the weaker still JPY and to illustrate what great value AUD is in Japan by listing 10 bargain things to do in Tokyo. Never mind that those 10 things consist mainly of visiting (free) parks and looking at Japanese architecture.
USD/JPY 1.5623.

Loch Ness Monster

Not a market we normally cover but the Silly Season has started early in 2024: the Loch Ness Centre’s Aimee Porter in an effort doubtlessly to revive flagging visitor numbers in this the 90th year since the first expedition in search of the Monster in 1934, has called on US Space Agency NASA to join the search. It’s not a NO but just a deathly hush from Cape Canaveral- a bit like Nessie then.
GBP/USD 1.2445.

Man in Black

This day in 1970 American singer Johnny Cash was invited by President Nixon to sing Okie from Muskojie when he was doing a concert at The White House. JC declined on the grounds that it was not his song. To make the point instead he sang this gem which he did write and which is very long, so here is a taste:

Well, my daddy left home when I was three
Didn’t leave very much to my mom and me
Except this old guitar and an empty bottle of booze
Now I don’t blame him ’cause he run and hid
But the meanest thing that my daddy ever did
Was before he left, he went and named me Sue
Well, he must’ve thought that it was quite a joke
And I got a lot of laughs from a lots of folk
Seems I had to fight my whole life through
Some gal would giggle and I’d turn red
And some guy’d laugh and I’d bust his head
I tell you, life ain’t easy for a boy named Sue
But I grew up quick and I grew up mean
My fist got hard and my wits got keener
Roam from town to town to hide my shame
But I made me a vow to the moon and stars
I’d search the honky tonks and bars
And kill that man that gave me that awful name
Well, it was Gatlinburg in mid-July
And I just hit town and my throat was dry
Thought I’d stop and have myself a brew
At an old saloon on a street of mud
There at a table, dealing stud
Sat the dirty, mangy dog that named me Sue

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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