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The Pound to Dollar rate rose and fell in ‘sheh’ as an American man sang “yeah” amid a broad-based decline by the greenback that was only interrupted briefly by a better-than-expected non-farm payrolls report on Friday.
GBP/USD traded in a narrow range spanning the gap between 1.3261 and 1.3331 throughout the day as government bond markets rose and fell while many ignored the local election tell from the opening bell.
The pair has found support around 1.3270 where there is the 23.6% Fibonacci retracement of the rally from the Monday , 07 April low around 1.2707, which appears to be shaping up as a solid support level for Sterling.
All of this was after Sterling rose against the Dollar but fell against other currencies amid a rise and fall in the Gilt market during European trade, before falling broadly as stock markets rallied around the globe and bonds sold off following a US non-farm payrolls report that was a bit better-than-expected for markets.
Above: Usher sings “Yeah.” Source: Youtube.
The payrolls report helped to dispel some of the doom and gloom around the US economy and its outlook, with employment rising 177,000, which was down from the 185,000 of March but above the 130,000 consensus.
This bolstered a rally in global markets around the world that appeared to have roots in a Chinese offer of grace and favor to the US after decision makers in Beijing expressed an openness to discuss trade issues with the White House and to launch the talks with a discussion about the deadly Fentanyl issue first.
“After a modest upward move in the immediate aftermath of ‘Liberation Day’, the USD/CNY fix has drifted lower again in recent days, and both onshore and offshore spot CNY levels are essentially stable to stronger versus the Dollar,” says the strategy team at Goldman Sachs, in a Friday research briefing.
Source: Linkedin.
“Market sentiment on Sterling has moved incrementally more positive over the past two weeks, with a net lengthening in our positioning metrics relative to other European currencies,” the Goldman Sachs team adds.
All of this came amid local election results from England in which the Reform Party saw a very large surge of support, foretelling an effective overturning of the already-record majority won by the ‘Labour Party’ last year.
The political earthquake offers insight into the way and will of the British people, as well as a prospective opportunity for some fresh and outside the box thinking about the challenges facing the country and economy.
Above: LondonBeat sings “I’ve Been Thinking About You.” Source: Youtube.
Readers’ Note; Google AI has the following to say about the word "Sheh";
"Sheh" (شَه or sheh) can have multiple meanings depending on the context. In some cases, it's a slang term used to express schadenfreude, similar to "too bad" but with a malicious undertone. It can also be a Punjabi word meaning "support". Additionally, "sheh" can be a Chinese surname (佘), and in Hindi, it can be used to indicate protection or, in chess, a threat (check).
Here's a more detailed breakdown:
1. Slang Term (French/Arabic):
"Sheh" is a recent slang term, often spoken with a smirk, to express joy or satisfaction at someone else's misfortune.
It's similar to "too bad" but with a malicious intent.
It's often pronounced with a soft or absent "h" at the end.
2. Punjabi Word:
In Punjabi, "sheh" (ਸ਼ਹਿ or شہِ) can mean "support" or protection.
It can refer to direct or indirect support from an organization or group.
3. Chinese Surname:
In Chinese, "Sheh" (佘) is a surname, according to My China Roots.
4. Hindi Word:
In Hindi, "sheh" (शह) can be used to indicate protection or, in the context of chess, a threat (check).
It's related to the Persian word "Shah" (king) and the game of chess, where "Shah Maat" means "king in check".
5. Hebrew:
In Hebrew, when "sheh" (ש) is followed by a verb, it can express wishes, requests, or demands, meaning "may".
For example, "sheh-yee-hee-yeh lah-khem yohm reh-vee-ee meh-ahn-yen" means "May you have an interesting Wednesday," according to a Facebook post.