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Boris puts his foot in it

08-Jun-2018

As if Theresa Mays job as PM leading the country through a Brexit process wasn’t hard enough already, Boris Johnson has landed her in even more of a tricky position after being ‘secretly’ recorded at a private dinner this week.

Latest Rates
GBP/USD
GBP/EUR
GBP/AUD
GBP/CAD
GBP/CHF
1.3412
1.1396

1.7680

1.7448 1.3158
GBP/JPY
GBP/HKD
GBP/ZAR
EUR/USD
EUR/GBP
146.77 10.5224 17.6751 1.1769 0.8774
Investec currency forecasts as at 1 May 2018
Q2'18 Q3'18 Q4'18 Q1'18
GBP/USD 1.38 1.39 1.40 1.41
GBP/EUR 1.14 1.15 1.15 1.14
No major data releases
Key Levels
Support
Resistance
1.3208 1.3451
1.1306 1.1600

Market overview

As if Theresa Mays job as PM leading the country through a Brexit process wasn’t hard enough already, Boris Johnson has landed her in even more of a tricky position after being ‘secretly’ recorded at a private dinner this week. Johnson warned that there may be a Brexit meltdown and refereed to the Treasury as the ‘heart of Remain’. Johnson also stated his admiration for Donald Trump and hinted that he would do a better job of dealing with Brexit. At a time when May needs to be in a position of strength she’s had two senior cabinet members in the form of Davis and Johnson publicly undermine her this week!

Data already released this morning disappointingly failed to suggest the Q1 weakness seen in the Eurozone was down to temporary factors. German Industrial output disappointed in April, falling back by 1.0% on the month (consensus +0.3%). March was revised higher to show a rise of 1.7% (previously +1.0%), but overall the report is softer than expected, and comes after the weaker than expected new orders figures yesterday.

The day ahead

With little out on the data front today markets attention will turn to next week, which is a lot busier. The Federal Reserve in the US are expected to raise rates by 25 basis points on Wednesday night. On Thursday the ECB meet to deliver their policy verdict although no change in expected. Market will as always be looking for pointers on any potential change in strategy. The UK doesn’t meet next week but rather on the 21st June, though the next critical meeting is in August. A speech yesterday by MPC member Dave Ramsden suggests he may support raising rates in August, having previously dissented against the hike seen in November 2017, but a hike is not yet a foregone conclusion.

Thought of the day

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