This week has seen currencies trade in relatively narrow ranges compared to recent weeks. EUR/USD is holding firm around the 1.12 mark whilst cable trades between 1.28 and 1.29 despite a busy week geopolitically wise.
German Chancellor Angela Merkel was doing her best to galvanise European solidarity in an 'us against them' inspired speech. After downing a glass of beer that actually appeared bigger than her, she somehow managed to climb on stage to announce "we as Europeans must take our future into our own hands" and that the "UK and U.S are no longer reliable partners". Strong words from the diminutive Merkel and one wonders whether they were carefully timed to coincide with the run-up to the UK general election.
If polls are anything to go by, the latest indications somehow show that Labour leader Jeremy Corbyn has narrowed the lead held by PM Theresa May, giving him wild dreams of heading up a coalition government. The thought of the distinguished figure of Corbyn, his comical side-kick Diane Abbott and Scottish Smurf Nicola Sturgeon skipping arm-in-arm down the yellow brick road to a G7 conference simply beggars belief and conjures up visions of The Three Stooges at their brilliant best. Yes, stranger things have happened folks!
Speaking of strange, let's flip our attention to Donald Trump. The President emerged from last weekend's G7 meeting to tweet that the "trip was a great success for America". Days later he pushed environmentalists into a frenzy when he jettisoned the U.S out of the global emissions deal that Barack Obama had signed. Influential figures from around the world surged to 'jump on Trump' and denounce his decision. Noticeably, Theresa May wasn't one of them as she was obviously in no doubt about his decision in advance when the pair spoke at the G7. Interestingly Theresa lost interest in the first few hours and left the conference to deal with the more important issue of trying to defend her own country from extremists. Expect next week to provide all sorts of shenanigans in the last few days before the UK election as currencies could see volatility suddenly return again.
Have a great weekend.