Plain Sailing across the Channel:
This Brexit malarkey is a walk in the park! Well, that’s what the Secretary of State for Exiting the European Union, Dominic Raab MP, must be thinking! Largely coincidentally, since the departure of David Davis, news on Brexit has been overwhelmingly positive, providing a boost to Sterling: Barnier mentions a deal within 6-8 weeks; flexibility surrounding Irish Border proposals… And now, this morning, EU Commission President Jean-Claude Juncker says that he welcomes the UK Prime Minister’s Brexit proposals. Of little impact to markets yesterday, we also learned that Bank of England Governor, Dr. Mark Carney, will be staying at the Bank for an additional year, until 2020. With one day left until both the European Central Bank and the Bank of England publish their interest rate decisions, last minute positioning has been rife this morning. Interestingly, news of a potential merger between Commerzbank and Deutsche Bank saw the European single currency enjoy light support. Emerging markets remain flat this morning with short term support found across the board.
Discussion and Analysis by Charles Porter
Click Here to Subscribe to the SGM-FX Newsletter
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 […]
I’m a central banker, get me out of here Ant and Dec were not present at the RBA decision overnight. However, based upon the reception of the decision, Governor Michele Bullock might rightly feel she was in one of the duo’s trials. Markets offered a frosty reception to the Reserve Bank of Australia’s latest interest […]
UK With 2 year mortgage rates less than 4% and 5 years at 4.39%, the implication for the housing market which has responded by a modest 0.2% rise, is that rates are soon going to fall and that the UK economy is stabilising. While there will doubtless be setbacks to this rose tinted scenario, for […]