Mid-term Day:
US voters travelled to the polls today with the political composition of the United States on the line. The mid-term elections are closing in on their twilight with seats in Congress’ House of Representatives and the Senate up for grabs. Throughout the day it has grown increasingly likely that votes in the House of Representatives have been won over by the Democrats with voting for the Senate favouring the incumbent Republican Party. The Dollar has lost some ground throughout the day to an appreciating Pound Sterling and a firm Euro. Minute by minute, the voting composition of the US polity becomes clearer with an inability to pass laws within the Senate pushing investors to liquidate holdings in a more exposed and politically uncertain US economy. The Pound has received good support throughout the day as markets asses the progress of May’s Cabinet meeting today. May has met with her cabinet to tell more opinionated leavers and remainers alike to moderate their views in the name of Brexit progress. At this stage, no news is good news as quietism by May’s ministerial colleagues is thought to signify tacit agreement with the Prime Minster’s Brexit plan. Unsurprisingly, therefore, the Pound has continued to appreciate step by step throughout the day. Italy continues to create an obstacle on the European front with the Commission and Italian leadership at loggerheads.
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 […]