We were proud to attend the event, which recognises local companies which have achieved high levels of sustained growth over a three year period.
Sterling re-established itself at levels against the US Dollar that were last seen prior to the result of the UK General Election a month ago, touching 1.30 briefly at the close of June. The reason for the about turn on Sterling were the comments made by the Bank of England Governor Mark Carney who, from a week earlier had said that an interest rate hike was unlikely which had led to a selloff in the pound, to hawkish comments that the Bank would start to reduce Quantitative Easing and that they would need to manage inflation = interest rate increase?
The US Dollar is struggling currently under the issues facing Donald Trump, and although there are no imminent actions, a fear he could be impeached is weakening the currency. The dollar is also not helped by the budget proposals which some feel have no credibility. Consequently, Sterling is close to an 8-month high. Positive UK data to some extent supports this, such as the 42-year low in unemployment figures, but other data such as poor wage inflation, increasing inflation do undermine …
Well, who knows! French elections, UK elections, Brexit discussions gathering pace, USA/N. Korea tensions, political changes in Turkey. Oil prices declining again. A brave man can predict through these global issues.
Brexit has been triggered with minimal impact on currencies. Sterling has strengthened since the official announcement. So the future of Sterling is now down to the announcements as the negotiations proceed. The US dollar is heading towards its worst 3-month performance in a year. Economic data looks good in this region, but the ‘Trump’ effect drags the dollar lower. In the Eurozone whilst fears of Marie Le Pen gaining office reside have added some strength, and data gradually coming from German and French statistics, looks positive.
Unicorn Ingredients, a leading British supplier of ingredients for the bakery and specialist breads markets has confirmed its latest range of seeds meets growing market demand for gluten-free products as well as ongoing demand for products that are nutritionally beneficial.
The main item being talked about at present is the inevitable interest rate hike in the USA, and this has been the cause of the recent realignment of Sterling to a 7week low. The triggering of article 50, must occur within the next 3 weeks, so how low can the pound go, or is this fully factored into the current rates?
The ‘Trump effect’ is having a very positive impact on the US dollar at present, as the executive orders do appear to, at least in the short term, provide a stimulus to the US economy and the Dow has responded in a corresponding manner. However, we are at the beginning of the ‘honeymoon’ and the USA is now downgraded by the Economist Intelligence Unit, to a ‘flawed democracy’ with declining trust and increasing inequality, leading to populist politicians …
We’re exhibiting at IFE 2017 (The International Food & Drink Event) at ExCel London from 19-22 March, where we will be showcasing our seed and grain range. Come and visit us at stand N1420.
2017 starts with much focus on developments in the USA, firstly the Fed reserve’s minutes indicate they are prepared to raise interest rates, three times in 2017, and faster than market players anticipated, this undoubtedly supports the dollar. The other will be the emerging fiscal policy of President elect Trump!