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May 2017

Sterling having a torrid time amidst Brexit speculation

Published: Monday 22 May 2017

  • Sterling having a torrid time amidst Brexit speculation
  • USD weaker on oil and other data
  • Euro recovers from France’s near miss but further problems ahead
By David Johnson
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The Pound had a mixed week last week; it was down into the €1.16 area against the improved Euro, which benefitted from more certainty in France, but which has not yet reacted to the calling of an Austrian election. However, Sterling gained against the US Dollar and remains around the $1.30 level. A significant break above here could take us to $1.35 and maybe even $1.38 without too much trouble. Another rise in oil prices has added to USD weakness.
 
Sterling starts the week on the back foot after further concerns were raised over Brexit prospects on both sides of the Channel. A poll showing the Conservative Party share of the vote fell after the release of the Tory manifesto didn’t inspire the true blue voters amongst UK pensioners and David Davies warned about the UK walking away from a deal with the EU if they persist in the demands for tens of billions of Euros as a leaving fee.
 
All is not rosy in the Eurozone, as Greece demands further debt relief and the German Finance Minister urged the EU to make some firm commitments to Greece. There is a meeting of the Eurozone finance ministers today to discuss the matter.
 
Today is quiet by any other standards, but the week ahead does offer plenty of volatility. For example, tomorrow brings German Gross Domestic Product (GDP) calculations, Eurozone Purchasing Managers Indices in all sectors, the German Ifo business sentiment report, and, from the UK, we will get government borrowing and retail sector data from the CBI. 
 
The CBI report on high street activity doesn’t include the Chelsea Flower Show but a fall from 14 to just 8 sponsored show gardens at the event is being blamed on Brexit. It is the latest ‘must blame’ event in the same way that, if you have to wear a jumper or a T shirt, it must have something to do with climate change.
 
 

Relationship tips 

  • When your partner says, “correct me if I’m wrong”, IT’S A TRAP. NO MATTER WHAT THEY SAY NEXT, DO NOT, UNDER ANY CIRCUMSTANCES, CORRECT THEM….EVER.
  • If a man says he will fix something, he definitely will. They is no need to remind him every six months.
  • "If we take matrimony at its lowest, we regard it as a sort of friendship recognised by the police." Robert Louis Stevenson
  • “Admit it when you are wrong and shut up when you are right.” John Gottman
  • “Marry someone who likes a different breakfast cereal to you. Then they won’t steal all of yours.” The thoughts on marriage of an eight-year old. 
  


 

For more information, infographics and the latest currency insights, visit www.halofinancial.com/news
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