Morning all
It has been a while since we’ve given you an update, mainly because nothing [interesting] has been happening!
GBP
So it looks like Theresa May will be borrowing Liverpool FC’s victory parade bus this week for a lift back to her country pad. Top tier news sources over the weekend have suggested that she’ll make an announcement some time this week. Who replaces her very much depends on what sort of Brexit we’ll encounter come Halloween. Fancy a laugh over lunch?
Skip to 18:37…
https://www.bbc.co.uk/iplayer/episode/m00052y9/the-andrew-marr-show-12052019
EUR
“Save haven.” Words we thought would never be associated with EUR. The Euro is showing signs of strength and finally benefitting from risk aversion. 1.16 is a key level to watch, if we break through that expect a rally to 1.1850, however very unlikely judging by recent performance.
USD
China trade talks are rumbling on and are “right where we want to be with China” according to Trump. The US more than doubled tariffs on $200bn of Chinese goods on Friday, in a sharp escalation of their trade war.
In our opinion both sides will suffer the longer this trade war continues, so expect USD to weaken long term. The ‘technicians’ amongst you will also note that we are now trading near and above the key 1.30 level, expect this to trickle higher as the week continues failing any major news.
Have a good day!