GBP improves as investor sentiment turns neutral after Trump speech..
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| It may have been the longest ever speech by a US President, but it was a bit of a non-event as far as the markets saw it.
Global stock markets are up (being led by tech ahead of Nvidia earnings later today), precious metals and crypto are in the green alongside the high-beta Sterling, as President Trump (uncharacteristically) avoided pretty much everything the people were hoping to hear.
There isn't really anything meaningful to write about from the event apart from Trump confirming the economy is 'roaring' and that he prefers diplomacy towards a solution with Iran and its nuclear programme.
Elsewhere then and BoE Governor Andrew Bailey, has hinted at an interest rate cut next month with money markets now pricing in a 90% chance (up from 40% only 2-weeks ago). This should already be priced into £'s current value.
Political uncertainty could arrive tomorrow if Labour fail to win the Gorton & Denton by-election and GBP could weaken by the result.
Overall, GBP v USD is still trading higher than most of its 2025 level, but is down 2% from its recent high and GBP v EUR hasn't been trading close to the key resistance barrier of £-€1.1550 mid-market most of the month and is instead trading in a lull in the 1.14's mid-market. |
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