Strong comfort for the markets from the Fed promising to ensure that the US economic recovery is broad and well established before removing its market assistance. USD still firm on the back of this trading at 1.1760 v EUR. Unemployment falling but still 18.9 million drawing benefits hence the Fed focusing on a full recovery-quickly.
Canadian Dollar weaker on the back of lower oil prices and lower bond yields-the 10 Year Canadian Dollar Government Bond now at 1.45% having been 1.67% just over a week ago. The differential in Canada’s bond yields versus the USA’s is doing the Loonie no favours.
Bitcoin and Tesla: Elon Musk offers to accept Bitcoin in payment for Teslas
Suspend disbelief(again) but Bitcoin investors (who apparently are the same people as Tesla buyers) have in all seriousness raised a question which is actually being considered: will they be recompensed if they use their Bitcoins to buy a Tesla car and then Bitcoin goes up in value? No question of course about what happens if Bitcoin declines in value! On one hand Bitcoin investors buy the argument that it is a substitute for Fiat currencies but at the same time by asking this question, they clearly do not. Bitcoin has had a losing week having fallen from over $60K to $52K or…..pretty much the price of entry level Tesla models.
In the 1999 animated film re-make of the original Johnny Weissmuller character, Phil Collins played his song, You’ll be in My Heart which was one of the five songs he wrote for the Walt Disney film and many would say his best. Here it is:
Come stop your crying
It will be alright
Just take my hand
Hold it tight
I will protect you
From all around you
I will be here
Don’t you cry
For one so small
You seem so strong
My arms will hold you
Keep you safe and warm
This bond between us
Can’t be broken
I will be here
Don’t you cry
‘Cause you’ll be in my heart
Yes, you’ll be in my heart
From this day on
Now and forever more
You’ll be in my heart
No matter what they say
You’ll be here in my heart
Always
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 – UK Wages
Humphrey Percy
Fri 26 May 2023
UK Wages Bank of England Governor Andrew Bailey yesterday warned of the pressure on wages that are threatening to lead to a wage price spiral as the effects of inflation on the cost of living together with the 12 consecutive interest rate rises that consumers have experienced. The market has not enjoyed the poor inflation […]
Morning Brief – UK inflation – June hike worthy?
Charles Porter
Thu 25 May 2023
UK inflation – June hike worthy? Yesterday’s inflation data surprised markets. The data was released slightly ahead of European core trading hours. The lighter liquidity available at this time could have resulted in the short-term spike towards 1.2450 on cable and around half a cent to the mid-1.15s within GBPEUR. However, you could, and perhaps […]
Morning Brief – International Monetary Fund
Humphrey Percy
Wed 24 May 2023
International Monetary Fund With no sign of insouciance despite its 180 degree turn in a two month timeframe, the IMF yesterday reversed its downbeat if not disastrous forecasts for the UK and stated the UK is no longer heading for a recession and nor is it the weakest member of the G7 when it comes […]
