- Italy may have new Prime Minister
- US Dollar still ramping away
By David Johnson
It looks likely that a largely unknown law professor may become Italy’s latest Prime Minister. The President still has a veto if he so chooses but Giuseppe Conte is a name we are likely to hear a lot more.
Sterling slips again
Sterling has slipped again as more Brexit discussion and speculation takes place and the day ahead brings government borrowing data as well as the governor of the Bank of England testifying to the Treasury Select Committee on the small matter of inflation. The Pound starts the day down below €1.14 again and around USD 1.3440. The CBI industrial trends survey is expected to be rather downbeat, so further Sterling weakness is a possibility.
US Dollar remains rampant
The USD, by way of contrast, is rampant. It has gained against everything in spite of higher oil prices and a general pickup in global demand. That kind of scenario would normally tempt scaredy-cat investors out of the safety of US treasuries and into higher yielding assets elsewhere. That isn’t happening. Maybe the rise of America as an oil producer is behind it. Maybe the brazen protectionism being shown by the Trump administration is a factor. Maybe traders are assuming further monetary tightening in the days ahead from the Federal Reserve. Maybe it is a little bit of all of the above. There isn’t much US data at all today, so there is a profit taking opportunity for traders. A little USD rebound is possible.
And once in a while a Quest raises its head. That is what happened to Glaswegian, Craig Mitchell. When the Scottish assembly raised the minimum price for alcohol, Craig’s beloved Asda cider went up from £2.15 to £5.75 for a 2Lt bottle. Craig rose to the challenge and his quest took him from Glasgow to Carlisle when he purchased 100 bottles and saved himself £180 in the process. I am guessing his next quest will be to a treatment centre for liver problems but that is a quest for another day.