So, after a rather embarrassing performance in the UK general election by PM Theresa May, the pound flipped broadly to the downside on fears of the uncertainty a hung parliament causes. The cheers from Europe were deafening on the news as the gloating started and drinks flowed amongst the European elites. In the following days after the election, GBP made a slight recovery as it became evident that Theresa was capable of heading up a coalition. Cable sits just under 1.28.
Meanwhile over in the States, the knives are being sharpened for Teflon Trump as accusation after accusation is thrown at him.
The Federal Reserve hiked interest rates this week by 25 base points and pointed to a further increase by year-end, however, due to unimpressive data emerging from the U.S economy, traders aren't quite buying that story yet as the probability of a further hate rise by December stands at just 40%. As a result, trading has been mainly contributed to a swaying USD rather than any particular strength in any other currency. It's a very quiet Friday so far.
We send our thoughts to the people terribly affected by the horrendous scenes at the London tower block fire this week. Simply shocking.
Have a peaceful weekend.