Weekly Market Report
Last week we saw the Pound hit near a 9 month high against the Euro and the best levels against the US Dollar since the referendum in 2016. There were many reasons behind sterling gains; both finance ministers from Spain and the Netherlands stated they wanted a closer relationship in regards to trade with Britain. German Chancellor, Angela Merkel made similar comments, which caused Sterling to spike considerably. Stephen Mnuchin the US Treasury Secretary also stated the US was very supportive of the UK over the Brexit issue and wanted to see a successful transition.
Mario Draghi the head of the European Central Bank failed to convince markets that the monetary policy wasn’t about to end. He spoke last week stating he was not worried about the high value of the Euro and the effects it may have on exports which in turn will be detrimental to the economy. The euro reached 1.25 against the US dollar, a fresh three-year high.
GBP/USD climbed to an 18 month high. The news about the government shut down has been the main factor in USD weakness. Since Donald Trump has been in power the Dollar has lost 15.2% against the Euro and 13.9% against the Pound. Stephen Mnuchin suggested he would welcome a weaker Dollar as it would benefit the US in terms of trade and opportunities going forward.
USD – Core Personal Consumption Expenditure
EUR – Gross Domestic Product
GBP – Bank of England’s Governor Carney speech
USD – President Trump Speech
Fed’s Monetary Policy statement
Fed Interest Rate decision
USD – Nonfarm payrolls