July starts with £-€ lower & £-$ higher..
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| A question i'm sometimes asked is; "Why do you mention US/USD when most of your readership and clients are UK/GBP & EU/EUR?"
A very fair question and I thought I would answer it here for the masses in case others were wondering the same..
Firstly to say that I do write US/USD specific content separately, as we have many readers and clients who are US based and purchasing property in Europe and UK companies that are trading in USD.
But the reason I mention what is going on over the pond is simply because what happens with the US, affects the whole world in nearly every way possible.
Remember - The US is still the global superpower and the USD remains the number 1 safe haven currency of the world.
The Pound starts the new month then 0.3% down versus the Euro and 0.5% up against the USD.
The latter is simply due to the expected $ weakness, so the Pound is just a happy passenger on that ride. On the former, Euro out-performance has been deemed the reason, so the Pound an unhappy passenger on this one..
Divergence in all its form will probably be the main market driver in H2. Who has inflation under control, who is cutting and holding interest rates, which economies are stagnating and growing etc.
I also expect Q3 & Q4 to be very different for GBP v EUR in particular.
If you would like to learn more my forecast for £-€ in Q3, please respond to this email. |
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