Sterling slips on no confidence vote conclusion

Today's Highlights

• European Central Bank rates – expected to remain on hold

• Euro still weak against US Dollar

• Opportunities for those trading Japanese Yen

 

Current Market Overview

Well, Mrs May is still Britain’s noble leader in spite of a fairly sizable ‘No’ contingent in her no-confidence vote. Sterling softened a little after the announcement but no one in the financial markets seems to know what to make of the politicking. Sterling will also have been weakened by the Royal Institution of Chartered Surveyors (RICS) survey, which showed another decline in overall house pricing. The Pound is back down to just over €1.11 and around $1.2650 at the interbank level.  Sterling traders really only have politics to drive their thinking today, so the Pound is unlikely to make any headway.

Euro still weak against US Dollar

We started the European session with a drop in French consumer inflation. The 0.2% monthly decline was worse than last month but in line with market forecasts. I suspect it would have been worse were it not for a rise in demand for fluorescent jackets. The Euro remains weak against the US Dollar ahead of the European Central Bank’s interest rate decision this afternoon. Although no change is expected from the European Central Bank (ECB), their outlook for inflation and demand will be interesting to hear in the press conference at 13.30 GMT.

Opportunities for those trading Japanese Yen

Anyone with a Japanese Yen requirement may wish to use tonight’s release of the Tankan indices as opportunities to run market orders. The forecasts are quite negative, so hold on for weakness in the Yen if those forecast are accurate, but be aware that the bounce may be spiky and recovery before the EU market opening is just as likely as Asian traders take profit on the moves. Get in touch to find out how to benefit from the market movements and protect any planned payments to or from Japan.

911 - what’s your emergency?

And police in Canada have been reminding the public to make proper use of the 911 emergency services number. They cite instance of a nine-year old girl who called the emergency number when her parents demanded she clean her room. To be fair, she’ll be a much greater offender if she doesn’t learn that lesson before she is in her teens. Teenagers have, after all, invented the floordrobe.

Let the festivities begin!

Just a quick note to let you know that the hard-working Halo team are coming together to celebrate the festive season this evening, so we will be closing the office at 5:00pm today, opening again at 8:30am on Friday morning – which is Christmas Jumper Day! Hooray!