Still on an upward path at 1.2130 versus EUR, USD is strong on the effects of the expected $1.5 trillion Biden stimulus package. The yield on the US 10 year Treasury Bond has increased by 0.20% in the past month and now stands at 1.17%. US Equity markets on their highs.
The German economy shrunk by 5.0% in 2020 which is less than expected and considerably better than the -9% expected in both Italy and France. EUR has weakened versus GBP by 1.5% in the last week.
Expectations are that transaction volume will decline by 8% in 2021 but somewhat optimistically it is expected that prices will remain stable. Despite greater difficulty for buyers to obtain finance and a slower market, French property always has plenty of both actual and shy sellers which is the reason that sellers are expected to hold firm in 2021. Early signs are that the French rental market looks ok this year as le staycation is going to be the limit of most French peoples’ holiday plans.
Exactly 40 years ago today Phil Collins released his single, In the Air Tonight on 15-01-81 which is a long rather bitter scream of pain based on his then wife leaving him. Hardly a first but what made it different was that in the Top of the Pops film, he positioned a tin of paint and paintbrush on the piano in camera shot, thereby confirming for close Phil Collins watchers that his wife had indeed departed the marital home with their painter and decorator. History does not relate whether it was indeed that 80’s favourite, avocado. Here’s (some of) In the Air Tonight which sounded better than it looks below:
I can feel it coming in the air tonight, (Oh lord)
And I’ve been waiting for this moment, for all my life, (Oh lord)
Can you feel it coming in the air tonight, oh lord, (Oh lord)
Well, if you told me you were drowning
I would not lend a hand
I’ve seen your face before my friend
But I don’t know if you know who I am
Well, I was there and I saw what you did
I saw it with my own two eyes
So you can wipe off that grin, I know where you’ve been
It’s all been a pack of lies.
And I can feel it coming in the air tonight, (Oh lord)
Well I’ve been waiting for this moment for all my life, (Oh lord)
I can feel it coming in the air tonight, oh lord
Well I’ve been waiting for this moment for all my life oh Lord, (Oh Lord)
On a happier note: Have a great weekend!
Discussion and Analysis by Humphrey Percy, Chairman and Founder
Click Here to Subscribe to the SGM-FX Newsletter
Related Insights
Morning Brief – Japan
Humphrey Percy
Fri 8 Dec 2023
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 […]
Morning Brief – Rather you than me, Christine
Charles Porter
Thu 7 Dec 2023
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 […]
Morning Brief – European Interest Rates
Humphrey Percy
Wed 6 Dec 2023
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 […]
