Mexican Peso and Markets Round Up
President Andres Manuel Lopez Obrador of Mexico not only believes but the market believes that he will pull off what most thought to be unattainable-namely no tariffs between Mexico and the USA and all by June 10 ie this coming Monday. The Mexico Peso has performed best of the major market currencies on the back of this expectation. Elsewhere oil is steady, equity indices are all green which makes a refreshing change from the sea of red in the past week. Gold firmer at $1328. GBP is steady-I would not dignify it by describing it as stronger-on the lack of any hard news on Day 2 of POTUS in the UK and the start of the inevitable Hokey Cokey that is the Conservative leadership contest. Jeremy Hunt is rumoured to be in discussions for a place in next year’s Strictly but is putting that down to Michael Gove spinning stories.
With not one but two band members celebrating birthdays in the past couple of days, Charlie Watts 78 and Ronnie Wood 72, it is worth remembering just how long the Stones have been big and more to the point earning big. The happenstance that saw Dartford boys Mick and Keith start talking about Muddy Waters when they met in the street in 1962 all those years ago has seen many many hundreds of millions if not multiple billions of GBP, USD, EUR, Yen and indeed just about every other currency revenues from albums, performances and of course merchandise as they have crisscrossed the world.
Unlikely you may think but our earlier rabid bat story provoked postbag from Florida where earlier in the week a 76 year old woman was confronted by a 3.5 metre alligator in her kitchen. Sportingly she described it as having a beautiful face….. well that was before the trapper arrived to capture it when in the ensuing struggle the gator broke a number of her stock of red wine bottles. Then she was less enthusiastic. With the USD strengthening against the EUR on the back of less than positive Europe wide election results, she can at least afford to replace them with some decent French plonk!
Discussion and Analysis by Humphrey Percy, Chairman and Founder
Calling the bluff As expected, the Federal Reserve raised interest rates in the United States yesterday evening by a further 50 basis points. As a result of this policy adjustment, immediate target policy levels now stand at 4.25-4.5%. As also expected, the Fed pushed back fairly hard on the idea that it is ready to […]
Pencil to pen As with any year ahead, 2023 has been fervently speculated over by market participants. Whilst forecasts for the forthcoming year take great priority every year, 2023 has perhaps the most divergent set of forecasts between analysts and institutions on recent record. Across asset classes and between institutions the core themes expected to […]
False Illusions On Friday last week markets had got very exuberant over comments made by the Federal Reserve Chair the day prior. As a result of the interpretation of those comments, the US Dollar had dropped several cents to trade at its recent lows. There was a narrative that was being pieced together and justified […]