The last comment concentrated on the euro and how it is likely to be buffeted around by Greece. This was certainly the case on Friday, as overnight weakness to fresh lows for the week was reversed sharply on rumours of a swift end to the saga. That seems unlikely as the relevant parties seen so wide apart.
For the British pound, economic data (apart from employment) has been weak, as wages are squeezed and inflation rages. Thankfully for treasury departments the technical picture is somewhat benign as the currencies ebb and flow through statistics.
The weekly chart below shows how the market is trapped between a triangle formation. This is one of the few classic patterns I respect and it means that the market is in a sideways trend, until a weekly close beyond a line, or the market just continues sideways into next February.
Within the pattern my analysis of price and time has an inner range of 1.1580 above and 1.1170 below. A break of either suggests an attack on the relevant trend line and all four levels can be used as reference points of relevant hedging activity.
There has been an uptick of treasurers inquiring about interest rate risk management in recent months as interest rates in the US and UK have started to show a rise in momentum, said Chatham Financial at the annual Bellin treasury conference.
Inthe UK’s recent Autumn Budget, Chancellor Phillip Hammond vouched for a plan to build a British economy that is “fit for the ... read more
Anyone long for a return to a more predictable economic time? Be prepared for a rather long wait, as the rate rise from the Bank of England’s (BofE) signals anything but a move to more conventional times.
When it comes to the relationship between Europe and Britain – uniformity isn’t a word that currently springs to mind. And that’s not just a reference to Brexit. Whilst the Europe and Britain do find themselves in the midst of a political break-up – their monetary policies are also showing signs of divergence.