A fairly stable month on the FX market, some ups and downs, but generally currencies have settled to where they started the month. In the UK strong growth figures bring an interest rate rise closer, whist Brexit negotiations, or lack of, add nervousness …
The pound has fared well over the last month, due to stronger signals regarding interest rate hikes, and positive data on employment etc. But going forward it will continue to respond to progress in the Brexit negotiations and inflation rate figures …
We invite you to take part in an easy to enter competition to help us raise money in memory of Frank’s daughter, Jenny. Jenny sadly passed away at the end of June, aged 19, whilst achieving two of her life goals – to travel New Zealand and help with conservation projects in Africa. Frank said: […]
Both US and EU data are strongly positive at present, with the US winning slightly and thus strengthening against the Euro. The North Korean missile situation is probably hampering the US dollar somewhat too, and this seems likely to continue for some time. In the UK stalemate over Brexit talks, anxiety about potential labour shortages […]
The period has been dominated by US dollar weakness as the political turmoil, and lack of progress continues in America. Combined with generally good economic data emerging from the Eurozone it has resulted in the Euro rallying significantly against the Dollar. Sterling has also done well despite lacklustre news against the dollar, but slipped slightly verses the Euro.
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.