Briefly Back to Brexit

8 March, 2016

For FX, the opening moves seen yesterday at the start of the European session were largely sustained until the dollar softened into the European close. Earlier on for sterling, there was a sense that the direction of the migrant crisis in Europe could play into the hands of those campaigning for an exit at June’s referendum. This may seem some time away, but the market’s sensitivity to such developments is only likely to increase in coming weeks. As for the single currency, the market is hearing more and more about the possibilities ahead of the ECB meeting this Thursday, where further policy action is anticipated, even though the size and form of this is very much open for debate.

For today, sterling will have one eye on the headlines emanating from BoE members testifying before the UK Parliament’s Treasury Select Committee on the costs and benefits of EU membership. The BoE has also announced that it will provide additional liquidity operations around the date of the referendum to ensure that banks have sufficient liquidity should strains emerge. To be clear, this is nothing to do with QE, it’s merely to assure the smooth running of the sterling money markets and banks. But naturally this is a very politically charges issue and this is likely to be very clear in today’s headlines from BoE members at the Treasury Select Committee. Cable pushed above the 1.4252 resistance level yesterday (50% retracement of Feb down-move), with trendline resistance coming in at 1.4321. Looking ahead, we have two central bank announcements coming up in the form of New Zealand and Canada. Neither are seen changing rates, but the accompanying statements will be closely scrutinised given the potential for lower rates from both later this year (more likely with Canada).


Source  
Oil is back in the spotlight1 Jun, 2020  

This week, oil may return to investors' focus, on par with the U.S. labour market. This data promises to shed light on how active the real recovery in consumer...

Americans pass pandemic holiday in parks as death toll nears 10000025 May, 2020  

Americans sunbathed on beaches, fished from boats and strolled on boardwalks this holiday weekend, but the occasional person wearing a mask was...

New U.S. House coronavirus bill contains $3 trillion plus in aid13 May, 2020  

The Democratic-led U.S. House of Representatives unveiled on Tuesday a sweeping new coronavirus bill with more than $3 trillion in assistance to states...


The phantom threat of inflation and fears of the virus second wave12 May, 2020  

Asian indices are losing about 1% on Tuesday morning while futures for European and US indices point to open in the red. This is associated...

UK could start lifting coronavirus lockdown measures7 May, 2020  

Britain now has the highest Covid-19 death toll in Europe, according to the latest official figures, climbing past Italy which, alongside Spain, has been among the...

Scientists Create Antibody That Defeats Coronavirus in Lab5 May, 2020  

Scientists created a monoclonal antibody that can defeat the new coronavirus in the lab, an early but promising step in efforts to find treatments and curb...


Saving more money than ever is destroying the economy4 May, 2020  

The COVID-19 pandemic is hurting many spheres of the economy. To slow the spread of the virus, the government told people to stay at home. Tons of businesses...

US weekly jobless claims hit 3.84 million1 May, 2020  

First-time filings for unemployment insurance hit 3.84 million last week as the wave of economic pain continues, though the worst appears to be in the past, according...

These countries effectively contained the coronavirus28 Apr, 2020  

Countries like Australia, New Zealand and South Korea are among the few which managed to buck the trend and put a lid on the coronavirus outbreak, at least for now...