Daily Brief – US Dollar

US Dollar

Broadly the market liked Trump’s nomination, choice of running mate and the growing likelihood of a second term for the ex President. USD strengthened against almost all of the G10 currencies and 10 year bond yields declined.

EUR/USD 1.0888.

Japanese Yen

As is normal practice in Japan the Japanese authorities do not comment on whether they have or have not intervened to support the Yen. Last week on Thursday and Friday the $/¥ rate moved 3% and it is safe to assume that intervention was responsible. It is estimated that just under $23 billion was expended by the Bank of Japan. However after only two more sessions the Yen has fallen back almost to the levels pre intervention. Cue Chief Cabinet Secretary Hayashi who announced that Japan stands ready to take all possible measures to counter excessively volatile currency moves. Of course that means downward moves and of course that means more intervention.

EUR/JPY 170.85.

Hydrogen

The MV Sea Change is the first hydrogen powered commercial passenger ferry and it’s free for the next 6 months as it transports passengers between Pier 41 and downtown San Francisco, USA. With a range of 550 kms and 16 hours of operating between refuelling stops, the technology could help clean up the notoriously polluting shipping industry. The fuel cells produce electricity by combining oxygen and hydrogen in an electrochemical reaction that emits water as a by-product. Not that the Bay of San Francisco will notice the addition of that water much.

GBP/EUR 1.1898.

Daily Telegraph

This Friday marks the closing dates for bids for the newspaper which includes the Spectator. The price tag is or rather was in excess of GBP 600 million which is what the Redbird (read Abu Dhabi) consortium paid for the call option to buy the newspapers. However one key bidder who being a hedge fund owner understands value is rumoured to have concluded that the papers are worth nothing like that sum. Also fellow bidder the Daily Mail has pulled out due to competition issues. That leaves veteran newspaperman  David Montgomery and legendary advertising guru Lord Saatchi as front runners plus Belgian media group Mediahuis in the race. With expensive journalists, falling sales and plummeting advertising revenues it is hard to see the attraction of owning newspapers in the 21st century unless as a vanity project in which case deep pockets required.

GBP/USD 1.2955.

You Make Me Feel ( Like a Natural Woman)

That day in 1995 singer songwriter Carole King’s 1972 album Tapestry went diamond which means it sold 10 million copies. There are no less than 92 albums that have gone diamond but this one is ranked number 24 and features in the record library of every collector of a certain vintage.

Looking out on the morning rain
I used to feel so uninspired
And when I knew I had to face another day
Lord, it made me feel so tired

Before the day I met you
Life was so unkind
You’re the key
To my piece of mind

‘Cause you make me feel
You make me feel
you make me feel
Like a natural woman
(Woman)

When my soul was in the lost and found
You came along to claim it
I didn’t know just what was wrong with me
Till your kiss helped me name it

Now I’m no longer doubtful
Of what I’m livin’ for
And if I make you happy
I don’t need to do more

‘Cause you make me feel
You make me feel
you make me feel
Like a natural woman
(Woman)

Oh baby, what ya done to me
(Whatcha done to me)
Made me feel so good inside
(Good inside)
And I just wanna be close to you
(Wanna be)
You make me feel so alive

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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