Whispers of a lingering global recession got a bit louder yesterday as 3 central banks made surprise rates cuts. Thailand, India and New Zealand all made the decision to slash rates as the China – US standoff continued to deepen. The three cuts come from New Zealand, India and Thailand
New Zealand – slashed its rates by 50 basis points to a record low 1%.
India – Their 4th cut in 2019 which now stands at 4.4%
Thailand – a 25 basis point cut, from 1.75% to 1.50%
These decisions come just a week after the FED lowered its lending rate for the first time since the wake of 08’s subprime mortgage crash that crippled worldwide economies. FED chairman’s Jerome Powell did indicate there could be potential easing during the year with Goldman’s predicting a 75% chance of a 25-point cut later in the year.
GBP/USD – Trading in the high 1.121’s. The majority of watchers are bullish at present, pointing toward an upward trend.
GBP/EUR – Half a cent shy of 1.09, which the pair are keen to test. However technical and psychological resistance has formed at 1.10 over this trading month.
EUR/USD – Currently around the 1.1200 mark, with markets calmer now china has fixed their rate at a stronger level than markets predicted
The Brexit whirlwind took another bizarre twist yesterday, it came to light that senior Brexit politicians have been discussing the possibility of getting the Queen to sack Boris Johnson if he refuses to step down following the possible vote of no confidence. Even though it's well established that the Queen stays out of politics altogether and is essentially neutral.
Dominic Grieve, a conservative MP and former attorney general came out in saying he would ‘expect the Queen to tell the Prime Minister to resign should he try and ignore a vote in the House of Commons’. This comes from opposition members of parliament and the odd Conservative considering the possibility of a no confidence vote this autumn. This is intended to collapse the government and prevent a no deal. It is widely expected this would trigger another general election.