Risk remains very much the driving force for FX markets as they fret about the extent of slowdown in the US economic recovery and the state of the global economy. Concerns about Eurozone peripheral economies have also intensified again, putting additional pressures on the euro and preventing it from benefiting from Friday’s news of stronger than expected Q2 GDP growth. As result we have the weaker EUR and stronger USD.
In spite of the media’s predictions, last night’s debate didn’t seem particularly historic, and disappointingly none of the politicians made any massive mistakes.
’s an historic day today, at least it is for the media who have got the leadership debate they have been demanding for years. There is no doubt that the debate will pull in viewers for the channels broadcasting it, but how much it will affect the parties prospects is uncertain.
There has been little reaction to the manifestos, either because they are both empty documents, or no-one actually thinks anything in them which proves problematic will ever be implemented. What did make a difference yesterday was a surprise narrowing in the trade balance deficit.