Daily Market Update 16/09/2021


Markets

GBP

Sterling is lower against most majors overnight. Boris Johnson reshuffled his cabinet drastically yesterday, in a move which saw Liz Truss appointed foreign secretary, the axing of Gavin Williamson, Robert Buckland and Robert Jenrick and Dominic Raab’s emergence as Deputy PM, Lord Chancellor and Justice Secretary. The UAE is set to announce a significant investment program in the UK, focused on expanding a multibillion-pound partnership with the British government in critical areas such as UK infrastructure, clean energy and technology. The overall commitment over 5 years is set to be 10 billion. The UK, US and Australia have established a tripartite defence agreement to counter Chinese influence in the Indo-Pacific.

EUR

The euro is lower against the dollar but higher against sterling in early morning trade. Ursula von der Leyen gave her State of the Union address from Brussels on Wednesday, speaking on the strength of Europe’s soul and the strategic weaknesses facing the bloc. She urged greater military independence from the U.S. and less reliance on Asia for computer chips. She conceded that the fight against climate change will depend on the entire world, especially China. Von der Leyen lamented the inability of the 27 capitals to come together on a single migration and asylum policy — a gap she said the EU’s rivals and human traffickers are now exploiting. In particular, she claimed credit for the EU’s successful vaccination campaign, touched upon the need for consistent standards on the rule of law and media freedom in the Union and spoke to the hotly contested election in Germany in 11 days’ time.

USD

The dollar is well-bid against most major currencies overnight. In California yesterday, Gavin Newson defeated an effort to have him recalled as the State Governor with more than 67% of voters stated they did not want him to be recalled. He termed the win a defeat for “Trumpism” which will now inspire confidence for the rest of the Democrat party. The US and EU have planned to curb methane pollution by 30% in the next decade, with an announcement due to be made on Friday. The pact is designed to push methane up the agenda at the COP26 summit to be held in Glasgow in November. US allies’, Taiwan and Japan, welcome a tripartite AUKUS security pact aimed to provide greater deterrence to China in the Indo-Pacific.

Ballinger & Co. Morning Report–16th September 2021

Today’s Rates

GBP>EUR – 1.1733

GBP>USD – 1.3817

EUR>USD – 1.1776

GBP>CAD – 1.7468

GBP>AUD – 1.8892

GBP>SEK – 11.901

GBP>AED – 5.0748

GBP>HKD – 10.753

GBP>ZAR – 20.016

GBP>CHF – 1.2754

Today’s Calendar 

·       EUR      ECB’s President Lagarde speech

·       USD      Retail Sales Control Group(Aug)

·       USD      Retail Sales (MoM)(Aug)

Today’s Highlights

·       Forex Today: Dollar holds up ahead of retail sales, energy prices soar, cryptos rise

·       EUR/USD Forecast: Euro looks to break out of wedge, but where? US Retail Sales hold the keys

·       China’s Commerce Ministry: : Will follow through on consensus reached by US-China leaders

·       Japan cuts economic assessment first time in four months due to COVID revival

(https://frank-exchange.com/)



This document has been prepared solely for information and is not intended as an Inducement concerning the purchase or sale of any financial instrument. By its nature market analysis represents the personal view of the author and no warranty can be, or is, offered as to the accuracy of any such analysis, or that predictions provided in any such analysis will prove to be correct. Should you rely on any analysis, information or report provided as part of the Service it does so entirely at its own risk, and Frank eXchange Limited/Manor House Foreign eXchange Limited accepts no responsibility or liability for any loss or damage you may suffer as a result. Information and opinions have been obtained from sources believed to be reliable, but no representation is made as to their accuracy. No copy of this document can be taken without prior written permission.

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