The U.K. pound came under pressure on Monday morning, as the two week E.U. deadline ultimatum issued on Friday, immediately effected trader sentiment when Asian markets opened, and the sell off continued until late afternoon. Theresa May’s authority came under pressure as ministers briefed against her over the weekend and more Brexit complication also emerged […]
Last week ended with several of the ongoing, global, political situations still dominating the political landscape; the U.K. political turmoil in the Tory Party, Brexit, USA tax cuts, and Catalonia, were the key issues of last week and will take centre stage over the next few days and weeks, until some form of resolution is
Will sterling react to the E.U. ultimatum, delivered on Friday to the U.K. government? Read More »
U.S. equities and the dollar sold off on Thursday as the U.S. Senate indicated that it could take up to 2019 in order for a tax plan to be fully ratified, moreover, the government lawmakers were suggesting that the final policy (when brought into law), would not resemble Trump’s outline plan whatsoever. The tech heavy
The U.K.’s political and Brexit situation is causing investors’ concern. News that certain major international U.S. banks will put London exit plans in place, unless favorable “soft Brexit” progress is made on the negotiations by January, added to ministers resigning, or being accused of the most sinister and grave forms of harassment, combined with the
Trump’s Republican Party are facing tough opposition from the Democrats, to push through their tax cut agenda, who have described the fiscal policy as a “total mess”. It must be noted that the DJIA and SPX have risen circa 22% since Trump was inaugurated and 30% YoY, not due to increased earnings or spectacular company
Having fallen consistently versus several of its peers last week, as the BoE’s dovish monetary policy statement failed to satisfy investors, the U.K. pound recovered much of its lost ground on Monday; GPB/USD rose by circa 0.7%, whilst EUR/GBP fell by a similar amount. The gains, versus the majority of sterling’s peers, came despite Brexit
Last week ended with the U.K. pound left reeling from the battering it took on Thursday, after the BoE announced a base rate rise of 0.25%. It wasn’t that the highly anticipated interest rise was already priced in, it was the accompanying dovish, forward guidance narrative, issued by the deputy and the governor of the
The standard economic orthodoxy works like this; when a central bank raises its interest rate, the value of the domestic currency rises, even if the rise has been telegraphed through the media and forward guidance is issued by the central bank some weeks earlier, warning of the rate rise. Whilst the rate rise can often
As forecasted by certain economists, who were polled by news agencies, the FOMC decided to keep the U.S. key interest rate on hold, at 1.25%, with a view to revisit the issue in December. The market reaction was subdued; EUR/USD and GBP/USD maintained similar levels to that seen before the announcement, with USD/JPY and USD/CHF
The Eurozone delivered positive economic calendar news in the form of hard data on Wednesday, which caused the euro to rise versus many of its peers, with the notable exception of EUR/GBP, where the currency lost ground. GDP figures for the EZ beat both the Q3 and YoY forecasts, coming in at 0.6% and 2.5%
