The Pound has recovered from yesterday’s woes. However, a fragile 0.2% appreciation on the day offers Sterling markets little commiseration with EURGBP and GBPUSD both trading slightly below the mid-point of their medium-term range. The Pound received a good bid following a confirmation from The Times that Michael Gove will not resign from May’s Cabinet where he presently holds the position of Secretary of State for Environment, Food, and Rural Affairs. Following a flurry of seven resignations, the positive affirmation from one of the co-heads of the Vote Leave campaign has allowed the Pound to enjoy a small degree of breathing room, grabbing back 4/10th of one cent against the US Dollar and the Euro since the European market open. The European Central Bank President Mario Draghi spoke this morning at his last (annual) European Banking Congress in Frankfurt. The board’s comments afforded some value to the single currency due to their continued isolation from the fiscal crisis in Italy and projection towards 2019 policy normalisation steps. The US Dollar has faced a headwind overnight as an agreement or deal between China and the United States during this month’s G20 summit looked increasingly unlikely. The Dollar fell on these remarks, deflating the optimism that the US president had shown markets earlier this month.
Today’s Global Market:
Discussion and Analysis by Charles Porter
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 […]
British Pound Reports that the UK may cut its interest rates before the USA cut their interest rates were the final straw this past week for Sterling. A slew of less than helpful inflation, employment and finally retail sales saw GBP weaker , but then the suggestion that with the background of that less than […]
US Dollar Surging on a strong US economy together with further geopolitical tensions in the past week, USD is at its strongest versus EUR this year and came within a whisker of breaking through 1.06 in yesterday’s trading. Against the Japanese Yen USD was 154.55 which caused Japanese Finance Minister Shunichi Suzuki to break cover […]