How To Guides
- Childbirth & Education
- Legal Formalities
- Pensions & Benefits
- Property & Accommodation
Did you know...?
- Airports and Airlines Spain
- Paramount Theme Park Murcia Spain
- Corvera International Airport Murcia Spain
- Daily brief -Thursday 23 March 2017
- When Expat Eyes Are Smiling
- Meet Wincham at The Homes, Gardens & Lifestyle Show, Calpe
- QROPS 2014
- Spain Increases IHT in Valencia & Murcia
- Removals to Spain v Exports from Spain
- The Charm of Seville
- Gibraltar Relations
- Retiro Park : Madrid
- Wincham announce opening of Marbella office
- Community Insurance in Spain
- Calendar Girls
- Considerations when Insuring your Boat in Spain
- QROPS – HMRC Introduces changes that create havoc in the market place
- QROPS – All Change From April 2012
Daily brief -Tuesday 31 January 2017
Interesting times in the States
It was another of those dunno days for sterling. On average the pound fell -0.6% - one Australian cent - against the other dozen most actively-traded currencies, losing ground to every last one of them. As for the cause of the pounds decline, dunno.
Some blame it on an expectation that the Bank of England's Monetary Policy Committee will be thinking dovish thoughts on Thursday. Some relate it to the announcement that the European Union (Notification of Withdrawal) Bill will be put before the House of Commons today. Others fancy that the prime minister's special relationship with Mr Trump associates the British government with the US president's isolationist stance, in particular his travel ban on Muslims.
The one thing that cannot be held responsible is UK economic data, for there were none on Monday. Whatever the cause, sterling lost half a US cent, three quarters of a Swiss cent and a quarter of a euro cent. It lost two yen to the day's top performer.
The Japanese yen led the way on Monday, its rise being matched by a fall in global equity prices. There can be no doubt that the driver here was Mr Trump's travel ban. The big US corporations that should be chortling about their anticipated tax breaks are instead fretting about the erection of one barrier to business after another.
What started out in Detroit, in response to the president's tough talk about building cars in Mexico, has spread to Silicon Valley. Corporate leaders there are complaining that key staff, including some of those leaders themselves, cannot leave the country for fear of not being allowed to re-enter. The safe-haven yen was the biggest beneficiary, strengthening by 1% against the US dollar.
Once again the economic data took a back seat to the executive orders, especially when Mr Trump fired attorney general Sally Yates for refusing to endorse his travel ban. Rather than waiting for the next shoe to drop, investors are now wondering just how much footwear the president has in his arsenal.
€Z inflation and GDP
Spain reported this morning that inflation more than doubled to 3.0% in January. Yesterday's German figure was 1.9%. The European Central Bank president will be speaking this morning. He might possibly feel the need to touch upon those numbers.
Mario Draghi's opening speech at the "Into the future: Europe's digital integrated market" conference is not an obvious vehicle for a monetary policy message but, it being a conference, he could well have to face questions on the subject. Later in the day the gross domestic product data are expected to show Euroland's economy expanding at the same pace as the United States, with growth of 0.5% in the fourth quarter.
The UK data this morning relate to lending and mortgage approvals and the US house price numbers come out after lunch. Tonight brings the New Zealand employment numbers and purchasing managers' index readings from Australia and China.
More Blogs By Daily Market Brief
- Daily brief -Thursday 23 March 2017
- Daily brief -Wednesday 22 March 2017
- Daily brief -Tuesday 21 March 2017
- Daily brief -Monday 20 March 2017
- USD weekly currency update- 17 March 2017
- EUR weekly currency update-17 March 2017
- Daily brief -Thursday 16 March 2017
- Daily brief -Wednesday 15 March 2017
- Daily brief -Tuesday 14 March 2017
- Daily brief -Monday 13 March 2017