Sterling Pounded | Forex Factory

  • Sterling Pounded

    From marctomarket.com

    The prospect of a no-deal Brexit continues to pound sterling lower. A little more than two months ago, it was testing $1.32. Two weeks ago it was around $1.25. Today it traded near $1.2120 before stabilizing. On the other hand, the 10-year Gilt yield is below 65 bp, a new multiyear low, while the international-laden FTSE 100 is holding its own in the face of heavier equity prices in Europe. The major equity markets in the Asia Pacific region rose except for Taiwan, which some linked to the anticipation of Apple's earnings later today. Led by financials, utilities, and industrials, the Dow Jones Stoxx 600 is off ... (full story)

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Lamplighter
Jul 30, 2019 9:20am
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So many analogies - but how's about this one. UK is lowering a life boat into the sea as the EU (Titanic) plows on regardless... It may be cold and lonely out on the deep dark ocean, but better there above water, than down at full fathom five knocking on Davy Jone's locker. (Remember that the Titanic was the 'unsinkable' ship.)
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foto
Jul 30, 2019 5:33am
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One thing for certain Fed is not going to start up a new round of QE to accommodate Europe dichotomy.
That Dichotomy is the Political desire to unify all EU Banking under one umbrella which today's Court decision out of Germany points towards.
This poised against renegotiating terms of Brexit which in EU eyes Britain is a breakaway Nation which could thwart the future unification of all EU countries.
EU by mixing a Political agenda, creation of European Superstate, with Business trade relations (supposed original purpose) is now in one tight bind with little wiggle room. So they offer a rework of the Political statement regarding Brexit but nothing of substance to accommodate British exit where it matters being an future economic association.
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Trader#65F2
Jul 30, 2019 5:44am
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Quoting foto
One thing for certain Fed is not going to start up a new round of QE to accommodate Europe dichotomy. That Dichotomy is the Political desire to unify all EU Banking under one umbrella which today's Court decision out of Germany points towards. This poised against renegotiating terms of Brexit which in EU eyes Britain is a breakaway Nation which could thwart the future unification of all EU countries. EU by mixing a Political agenda, creation of European Superstate, with Business trade relations (supposed original purpose) is now in one tight bind...
Well, very interesting, but according to my charts, since the start of this week, the value of the EURO is staying STEADY... you may have different forex charts to me? It seems to be the pound that's falling in value in relation to the Euro and Dollar
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TudorIoan
Jul 30, 2019 7:18am — Edited
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Quoting foto
{quote} Your powers of analysis are truly amazing. How can I argue with such an intelligent dissertation on issues that have been with Humanity since the last Ice Age and probably before. Only was last century when Two World Wars centered in Europe based upon Sovereignty of Nations and impositions upon said Sovereignty by external forces occurred but you must know better about these sort of things. After all everything can be resolved with a simple Keystroke on computers.
Oh, I seeeee.... you wanna compete with my amazing powers of analysis, ahaaa!
I am sure you are ready to go back to dinosaurs to prove your fantastic powers of intelligent dissertation and screw anyone back ...oooh, by the way, I have resolved you with a simple keystroke long time ago... I'm awfully sorry for that, I mean you're such an agreeable sport ...
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foto
Jul 30, 2019 6:06am
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Quoting Guest
{quote} Well, very interesting, but according to my charts, since the start of this week, the value of the EURO is staying STEADY... you may have different forex charts to me? It seems to be the pound that's falling in value in relation to the Euro and Dollar
What am saying here is that there is an intractable situation developing in Europe. EU is not going to renounce its Political agenda, the unification of EU countries under one banner just to accommodate Britain which when it joined EU never agreed to surrender its own Sovereignty.
Those who consider Boris Johnson actions as ploy ( El Erians article on game theory as example) are missing the deeper issue which is Sovereignty. The odds of hard exit and consequent Risk off outcome are rising as negotiations are no longer about economics but about Political self determination.

My initial reference to Fed as not going to act to ease a European created stalemate points to an Risk off market outcome. Europe which is already on verge of recession will tip into one and only experiencing that pain is going to be great enough to resolve the Political differences as they stand now.
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foto
Jul 30, 2019 7:04am
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Quoting TudorIoan
Hidden
Your powers of analysis are truly amazing. How can I argue with such an intelligent dissertation on issues that have been with Humanity since the last Ice Age and probably before. Only was last century when Two World Wars centered in Europe based upon Sovereignty of Nations and impositions upon said Sovereignty by external forces occurred but you must know better about these sort of things. After all everything can be resolved with a simple Keystroke on computers.
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Vancarbon
Jul 30, 2019 8:22am
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How does this

We came to rob you and you snowflakes were stupid enough to accept us! so STFU!

correlate with this then Tudor

You can't argue with people obssessed of "sovereignty". In their "royal" phantasmagoric rant they confuse sovereignty with butthurt feelings of a dead empire. They hate to be common, ...they're "fancy", proud, and "sovereign"
My cat too ! miouuu!

They rather fck their economy than share common values with other civilizated nations.
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Vancarbon
Jul 30, 2019 9:43am
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The hardest hit is going to be taken by Ireland out of all the EU27 states . Approx 88% are unprepared for no deal and most of it's trade via the EU passes through the UK .

Ironic considering the GFA is being weaponized by the Republic and insisting on the backstop . The EU for now claim solidarity but Ireland will need to be bailed out via the IMF or the ECB
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Trader#65F2
Jul 30, 2019 10:05am
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Quoting foto
{quote} What am saying here is that there is an intractable situation developing in Europe. EU is not going to renounce its Political agenda, the unification of EU countries under one banner just to accommodate Britain which when it joined EU never agreed to surrender its own Sovereignty. Those who consider Boris Johnson actions as ploy ( El Erians article on game theory as example) are missing the deeper issue which is Sovereignty. The odds of hard exit and consequent Risk off outcome are rising as negotiations are no longer about economics but...
Firstly EU membership was not a one way street regarding sovereignity and influence.... yes, in an economic union some sovereign decisions need to be taken at a federal level... but the members like the UK have a say and influence inside the EU... going for a Theresa May Brexit would mean the UK becomes a rule taker but not a rule maker.... and going for a hard brexit, means Obey the USA and EU...

You don't increase UK sovereignty by weakening it's economy and influence... you decrease it's sovereignty, just as poor third world countries have weak sovereignity compared to strong trading blocks of rich countries.

The 100% sovereign British Empire died long ago, so the UK lost 100% sovereignty when it came out of the second world war and lost it's colonies.
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TudorIoan
Jul 30, 2019 9:39pm
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Quoting Lamplighter
So many analogies - but how's about this one. UK is lowering a life boat into the sea as the EU (Titanic) plows on regardless... It may be cold and lonely out on the deep dark ocean, but better there above water, than down at full fathom five knocking on Davy Jone's locker. (Remember that the Titanic was the 'unsinkable' ship.)
BS! It's the other way round. UK is sinking.
Look at the charts FFS! Market is always right.
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TudorIoan
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