TGIF! Lots gone on since our last update, but still very much continuing the same theme; calm down!
Getting frustrating that macroeconomic data has very much taken the back seat whilst all these unsubstantiated reports have been released stating that we are edging closer to a Brexit deal. Brilliant for all you GBP sellers and we suggested hedging something forward here as it won’t take much for the Irish border situation to flare up.
16 month high vs the EUR after the Federal Reserve today kept interest rates steady and reaffirmed its monetary tightening stance, cueing up a interest rate hike just in time for Christmas. Unusually too, USD seemed largely unaffected by midterm elections on Tuesday. Business as usual!
Economic and political turbulence in the EU will keep the EUR at bay for the foreseeable. We still genuinely believe that in isolation nothing substantial will happen with the EUR until March ’19 is done and dusted.
Nothing more to add this end, have a good weekend!