Giles Coghlan LLB, Lth, MA
Financial Source
As of 0653BST this morning the GBP was sold on the news that N.Ireland's DUP says that as things stand, ‘we cannot support what is being suggested on customs and consent issue. The DUP are necessary for Boris Johnson to get the deal through Parliament, so their support is critical. Elsewhere, ITV's Peston reported that EU leaders can still ratify before the weekend if the legal text could be agreed by 0800BST. If that report is correct, the latest news from the DUP has made that ratification impossible before this weekend. So, we are back to seeing the GBP move on headlines. The ones to watch are issues involving consent and customs for the DUP, a Brexit extension, and any shifting in ground from the EU on the DUP's sticking point. The GBP fell more than 0.4% on the news this am and GBPUSD was down to 1.2765 on the headlines.
Our products and commentary provides general advice that do not take into account your personal objectives, financial situation or needs. The content of this website must not be construed as personal advice.
Recommended Content
Editors’ Picks
AUD/USD jumps above 0.6500 after hot Australian CPI data
AUD/USD extended gains and recaptured 0.6500 in Asian trading, following the release of hotter-than-expected Australian inflation data. The Australian CPI rose 1% in QoQ in Q1 against 0.8% forecast, providing extra legs to the Australian Dollar upside.
USD/JPY hangs near 34-year high at 154.88 as intervention risks loom
USD/JPY is sitting at a multi-decade high of 154.88 reached on Tuesday. Traders refrain from placing fresh bets on the pair as Japan's FX intervention risks loom. Broad US Dollar weakness also caps the upside in the major. US Durable Goods data are next on tap.
Gold price cautious despite weaker US Dollar and falling US yields
Gold retreats modestly after failing to sustain gains despite fall in US Treasury yields, weaker US Dollar. XAU/USD struggles to capitalize following release of weaker-than-expected S&P Global PMIs, fueling speculation about potential Fed rate cuts.
Crypto community reacts as BRICS considers launching stablecoin for international trade settlement
BRICS is intensifying efforts to reduce its reliance on the US dollar after plans for its stablecoin effort surfaced online on Tuesday. Most people expect the stablecoin to be backed by gold, considering BRICS nations have been accumulating large holdings of the commodity.
US versus the Eurozone: Inflation divergence causes monetary desynchronization
Historically there is a very close correlation between changes in US Treasury yields and German Bund yields. This is relevant at the current juncture, considering that the recent hawkish twist in the tone of the Fed might continue to push US long-term interest rates higher and put upward pressure on bond yields in the Eurozone.