Teis Knuthsen
Teis Knuthsen
economy tending
Sterling is overvalued and the economy is tending lower.
currency driving fact markets money rate recently series warming
What's been driving the currency recently is the fact that money markets have been warming up to a series of rate hikes.
against consider cut dollar expect further rate rising tune until
We consider sterling to be overvalued and expect it to weaken against the dollar in tune with rising expectations for a rate cut by the BOE. Until we get further confirmation that BOE will cut, sterling will be volatile.
beginning commodity correction gave happened lift range saw theme trading weaker yesterday
Yesterday we saw the beginning of a correction in a range of commodity prices, particularly gold, and as that happened we saw commodity currencies trading weaker and that gave a lift to the dollar. That theme is still valid.