EUR 9.24 For Business Accounts Only

The Morning Track rulings

- The Morning Track - Rulings by Bob Savage
http://track.com/articles/the-morning-track-rulings/

The UK May government lost its Brexit appeal at the Supreme Court in an 8-3 decision – as expected. The government is not allowed to trigger Article 50 without Parliament. The Italian court ruling for new elections is set for later today. The central bank of Turkey raised its lending rate 75bps as expected but not the borrowing rate – bowing to Erdogan pressures and putting its credibility into question. TRY is weaker – one of the few currencies in EM not stronger today. The world is watching rulings and hoping that the down trend in the USD is over so that they can trade other things. The focus in the overnight news was on the flash PMI reports where Germany again outperforms – but there is a sense that economic data won’t make up for the political risks ahead. The UK is making that clear with Brexit still driving volatility. The focus in the US remains squarely on Trump. The USD dive in Asia followed the late comments from Mnuchin – in hearings for his Se
cretary of the Treasury job – when he said a 25% appreciation of the USD might be a bad thing. The opposite isn’t the case for the JPY or the EUR or many other currencies and that is the trouble. The EUR/USD fails overnight despite the PMI reports and the hope for stability in the upcoming elections. The failure to take out 1.0830 resistance means we may be back to grinding to 1.05 and so it goes in a market bent on trying to move faster than the law.