Articles Archive for September 2016
Currencies, French News, sterling »
The pound suffered huge losses in late Friday trading, compounded by a mix of strong US inflation numbers and more critically the fact that the Bank of England maintains its stance that more Brexit pain is due to come. Adding to that, reports emanated on Friday afternoon that Chancellor Hammond has given up on retaining full access to the single market in the EU, coupled with EU President Donald Tusk indicating to the markets that Prime Minister May has discussed the possibility of triggering Article 50 as soon as February. …
French News, interest rate cut »
The Bank of England rate decision meeting didn’t provide any fireworks yesterday, as UK policymakers voted 9-0 in favour to keep interest rates unchanged. Despite signalling further rate cuts in the future, the decision didn’t come as a surprise considering the amount of stimulus they introduced last month.
The central bank is monitoring recent data closely, and they are encouraged to see that the stimulus package seems to be working, as recent data has been fairly positive and at times even better than market expectations. It appears that investors are still …
Brexit, Currencies, French News »
Sterling strength continued last week following the surprising news that UK data rose above expectations. The recent data throughout the past couple of weeks has contributed massively in easing concerns of an immediate post Brexit shock to the economy.
We should expect to see rising tension in the newly-formed Cabinet today following PM Theresa May’s abrupt shut down of Boris Johnson’s plan for a points-based immigration system, stating that it is not the “silver bullet” that will solve the nation’s migration concerns.
August services PMI and Carney’s appearance may impact Sterling
To start …