As Brexit dominates the Pound, economics and monetary policy dominates the Dollar, and political scandal dominates the Rand, FX markets may start sounding like a broken record. However, one should remain very much aware that this repetition and almost paradigmatic taxonomy of certain currencies is more fragile than it may seem. Even the slightest amelioration or deterioration of the current situation could have phenomenal or catastrophic consequences for the respective currency. The Dollar has been the unquestionable winner so far this week as markets reprice their approach to the Chairmanship of Jay Powell. Sterling meanwhile has been caught in the doldrums, threatened by a Dollar that currently trades at 1.3750 against the Pound and 1.1280 against the Euro. The Rand has weakened off mildly following a disappointing and somewhat frustrating cabinet reshuffle. The Rand now trades close to 16.40 against the Pound, 11.92 against the Dollar, whilst clinging on just above 14.50 against the Euro.
Japanese Yen With JPY at a new 34 year low versus EUR, the market is set for an ambush by the Bank of Japan if it acts today at the end of their Policy Meeting to support the Yen. The reason that the market is susceptible is because it has convinced itself that the BoJ […]
Too soon to call USD lower Those following the US Dollar’s performance in the markets would have noted a recent downturn accelerating as this week has progressed. There have been two factors driving this sell-off but it is far from certain that either may endure long enough to push the Dollar index back to its […]
Milan, Italy The City of Milan has a late night noise problem and so it has acted unilaterally to resolve it-Italian style. A ban on the sale of take away food including ice cream and pizza after midnight is being imposed to protect the “peace and health of residents.” Here in the UK late night […]