Brexit is obviously dominating the market, and despite the government Cabinet accepting the terms of the agreement, the biggest challenge for Prime Minister May is whether she can get the backing of Parliament. There remains huge uncertainty, with many scenarios still possible, including a potential no-confidence vote in May and a leadership challenge.
For the UK economy, headline earnings were up 3.2%, the fastest growth rate in a decade, whilst inflation remained at 2.4%.
Retail sales however, came in much weaker than expected.
In the US, Fed chair Powell said he is very happy with the performance of the US economy, and expects the positive growth momentum to continue.
On the exchanges, sterling remains highly volatile and completely driven by Brexit.
GBP/USD, having failed just below 1.3200 last week, dropped to 1.2730 yesterday on the lack of support for May’s Brexit agreement.
Last month’s low around 1.2700, and the August low of 1.2660 are the next downside levels to watch, with 1.3050 the initial topside level from here.
GBP/EUR remains in a 1.1200 – 1.1500 range for now.
|21/11/18||UK Public Sector Net Borrowing||3.3b||5.3b|
|Indices||Previous Close||YTD % Change|
|DFM GENERAL INDEX||2778||-17.57%|
UK Benchmark Rates
|3 month||0.88650%||2 year||1.15%|
|6 month||0.98650%||3 year||1.24%|
|12 month||1.14113%||5 year||1.37%|
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