Uncertainty in Europe, but Britain and Mexico hope for further gains

Political uncertainty could start to affcect the Euro while the GBP and MXN hope to continue their gains.


As we head into August a quiet period begins on the European continent as several governments go on holiday. It is pretty certain that the European Central Bank will cut off quantitative easing entirely in December but it does not seem like officials think that the European economy is in a place for Interest rate hikes right away. The GBP gained half a point despite a lack of overwhelmingly positive information, but if May's recent consolidation works in her favor, the pound could continue to rise if positive Brexit sentiment increases.

The Mexican peso gained 7.6% alone this mont, a result of renewed enthusiasm for NAFTA negotiations by all 3 parties. There is a lot of Central Bank activity ahead this week and China has shown interest in trade talks with the US, so this week is sure to be interesting!

If you are a client of Tempus and have not done so already, be sure to read the 2018 Tempus Annual Outlook. If you are not a client of Tempus and would like a copy, email: inbound@tempusfx.com.