Unaccustomed Union:
The direction to markets today has been clear: Brexit is looking good and the Dollar’s rivals are back. With the Pound and the Euro both respectively seeing enormous bids on the back of Brexit progress, the Dollar has lost some of the traction that has made it the trade of 2018. The Irish government has spoken officially, giving weight and credibility to May’s proposed solution to the Irish border; perhaps the greatest sticking point in negotiations besides the bill! The Republic suggested it would allow a complete customs union between the EU and the UK, affording May’s extant plans greater credibility. The Pound rallied magnificently, breaking through 1.13 against an admirably performing Euro and confidently surpassing 1.30 against an ailing Dollar. Ahead of a pivotal EU summit this month, Ireland’s concession is important, removing one of the obstacles that the UK could face before the European Council. Emerging market sell offs are prevalent within equity markets, yet downward pressure is still evident within the Rand and the Lira. Non-farm payroll data is released tomorrow afternoon, with all eyes on the performance of the domestic US economy.
Since Market Open:
Discussion and Analysis by Charles Porter
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 […]