Our analysts have their fingers on the pulse of the world's financial market news.
The escalating US -Sino trade spat continues to attract the bulk of investor attention as it moves towards round two. Following an initial levy on $50 billion worth of Chinese imports, which prompted a retaliatory measure from China; round two has seen Trump
Safe Haven Yen Rallies in Asia
As the US and China head straight towards a full-on trade war
Moves into safe havens have increased with the Japanese yen trading heavily and jumping 0.6% versus the dollar, breaking through the 200-day MA at 110.22 and then through the psychological level at 110.00 The Swiss franc was also better bid, pushing higher versus the dollar.
Sterling Struggles as May Under Pressure
The pound is still unable to focus on the Bank of England MPC rate decision on Thursday, as Brexit developments keep grabbing the headlines. The pound sunk heavily in the previous session as pressure on Theresa May mounted and the House of Lords defeated the governments’ “meaningful vote” amendment,
This will not only test May’s ability to steer a minority government, but also the pounds buoyancy as pro-EU rebels promise they can collapse the government if their demands aren’t met. Theresa May showing signs of weakness and an inability to control her party wouldn’t bode well for the future as several other pieces of legislation are still needed in order to prepare for Brexit. The pound is picking up slightly as we move into Tuesday, we expect trading to remain relatively muted given the lack of UK economic data and until after the vote on Wednesday.
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