There was little change in the trading landscape this morning, the early reports of a potential £66 billion hard Brexit hit to the treasury ensuring the pound maintained its dismal form.
It’s hard to find anything new to say about sterling’s sustained slide. Losing another half a percent to the dollar and 0.2% against the euro, the pound is hitting new lows on a daily basis, investors gripped by the fear that Britain will leave the single market. Even the FTSE is struggling to enjoy the pound’s decline this Tuesday, the UK index managing a meagre 10 point raise. And while that leaves the FTSE at effective all-time highs it does suggest that the index may well new another source of momentum if it is to climb any higher.
Over in the Eurozone things were just as flat, both the DAX and CAC struggling for movement. This despite a pair of strong ZEW economic sentiment readings; the German figure came in at 6.2 against the 4.3 forecast, while the region-wide figure was even more robust in its beat, coming in at 12.3 against the 6.3 expected.
Looking to the US open and once again the Dow Jones is facing an empty economic calendar. That arguably means the US election will dominate the session, with the gradual erosion of support for Donald Trump within in the Republican Party likely to lend the dollar a bit more cheer, while dragging the Dow down by around 20 points.
