Theresa May Steps Down

The Pound has held its ground for the majority of the week. This can be largely attributed to the positive comments from BoE head Mark Carney yesterday where he stated that an interest rate hike was still on the cards once the Brexit situation has been sorted out.

The PM steps down as the head of the Tory party today, however will remain as Prime Minister until she feels confident that she can approach the Queen and introduce a new leader that commands the confidence of the House of Commons.

Euro

The Euro seems to have dodged another bullet after the outgoing ECB President Mario Draghi was far more bullish than anticipated in comments made after the interest rate announcement yesterday. With the growth and inflation rates looking concerning in the EU and geo-political instability after the EU elections, Brexit and the Italian Debt situation – the Euro looks susceptible to selling pressure in the months ahead.

US Dollar

The US Dollar has done remarkably well considering the current ongoing trade war situation – on three fronts, global growth slowdown and the abrupt change of direction in the movement of interest rates in the US. The Dollar has benefited from the safe haven status it holds.  

The main focus for the Dollar today will be the non-farm payroll numbers and the average earnings reading due out later today.

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