- Euro hampered by Italian budget worries
- US Dollar down on disappointing inflation data
- More watching and waiting for the currency markets
By Joe De Berniere
It’s all about the Pound (and Brexit) today…
Following comments earlier in the week from EU chief negotiator, Michel Barnier, that 80-85% of the UK’s withdrawal deal with the EU was agreed, the Pound continued to rise early yesterday morning. This was slightly dampened as the Democratic Unionist Party (DUP) increased its objection of a Brexit deal that could result in new barriers between Northern Ireland and the rest of the UK. On a more positive note, UK Chancellor, Philip Hammond, echoed others while speaking at the International Monetary Fund (IMF) meeting in Bali this morning, saying that Britain could see an economic boost if it successfully negotiates a deal with the EU – and that all signs indicate that a deal is imminent. This remains to be seen at the upcoming EU summit next week, so the markets are watching closely for the next snippets of news.
Euro hampered by Italian budget worries
Sterling gained around 0.5% against the Euro, following ongoing concerns over Italy’s upcoming budget. The latest reports are that the EU may in fact reject the budget, which would force Italy to go back to the drawing board, creating yet more uncertainty for Europe’s third largest economy.
US Dollar down on disappointing inflation data
The Pound also struck a three-week high against the US Dollar yesterday, as US inflation figures came in below forecasts. This is the second consecutive month in which headline US inflation has underperformed, which may in turn weaken the case for the Federal Reserve’s aggressive interest rate hike strategy. This weakness in the US Dollar in turn offered slight relief to the Australian and New Zealand Dollars.
More watching and waiting for the currency markets
With little key economic data due to be released today, the main focus will be ongoing Brexit news and how this will affect the Pound. Next week
is a different story, however, so we could see movement from Monday. Don’t say we didn’t warn you…
Rory McIlroy and Stevie Wonder meet at a charity event. After some initial small talk, Rory hears Stevie say he plays golf.
"So the lack of sight must be a big obstacle to playing golf," says Rory.
"Not really," says Stevie. "I I've got a great caddy who stands in the right line and I play the ball towards him. Then he moves onto the green and kneels down behind the hole and I put towards his voice."
"Wow. That's amazing", says Rory. "What's your handicap?"
"I used to play off scratch but it’s a bit worse as I get older. I am playing off 3 these days. "
"We should get together and play some time. I would love to see you in action," says Rory.
"How about we make it interesting. Let's say $10,000 a hole?" says Stevie.
"I love your confidence," says Rory. "You're on." He leans forward and shakes Stevie's hand. "When do you want to play?"
Stevie thinks for a while and then says, "Well I have a few shows to do this week but pick any night next week."