- May to end May naming her last day
- Sterling's slide may find a bottom
What do we want? CLARITY! And when do we want it? NOW!!!
Poor old Mrs May. She has lost the battle over her version of Brexit, it's looking like she has been embarrassed in the EU elections and now she seems set to leave 10 Downing Street on the 10th June. Meanwhile, Britain has lost three years of its life while the rest of parliament has done its damnedest to subvert the will of the people. Could it be anything to do with the fantastic pensions ex MPS get when they take on an EU job? Maybe we should ask the Kinnock family.
Meanwhile the Pound has continued to slide against the Euro but rebounded a smidgeon against the USD overnight; more of that later. In fact Sterling started the month around EUR 1.1770 and is lurking near 1.13 this morning. It may be in a long term downtrend but, as long as it stays above 1.10, it will still be in the uptrend it has occupied since July 2017. This morning's UK retail sales data will be heavily overshadowed by politics but are likely to show a slowdown in high street activity. People are evidently too busy sitting at home throwing things at the news channels.
We heard overnight that Japanese inflation picked up a little to 0.9% on the year. That created a little JPY strength and this, combined with Sterling's trials and tribulations, dropped the GBPJPY exchange rate down to 138.50 or thereabouts.
The GBPUSD rate picked up a little due to a smattering of USD weakness overnight. Hints of a deal with China have eased the buying interest in the safe-haven USD. There is a little bit of US data today in the guise of durable goods orders and very little else. So, barring a breakthrough between Trump and Xi Jinping, the USD will most likely remain relatively range bound. We start the UK session with GBPUSD at 1.2650 in round numbers.
And bored bike shop workers in Bury St Edmunds decided to cremate a dead mouse they found at the store. Bad mistake. The fire got out of control and the resulting blaze gutted the bike shop and damaged nearby buildings causing $1.6 million in damages. I don't think 'ooops' really covers that does it.
Have a great weekend everyone and we will back on Tuesday.