The US central bank raised rates by a further 0.25% this week as widely expected, despite Trump’s objections.
The committee did however, reduce the expectations for rate increases next year to a further two, down from three previously.
In the UK, May announced the parliamentary vote on her Brexit deal will take place in the week of January 14. She continues her efforts to gain further concessions from the EU ahead of the crucial vote.
There remains huge speculation on the next steps should the deal be voted down.
On the data front, inflation has dropped to 2.3%, a 20-month low, led by a sharp drop in oil prices. This further benefits the consumer following average earnings ticking up to 3.3%.
On the exchanges, liquidity continues to drain from the markets as we move towards year-end.
GBP/USD has nudged slowly higher, but remains in a 1.2500 – 1.2750 range for now.
GBP/EUR has dropped lower, but remains above the significant 1.1000 level. Sentiment remains negative whilst we remain below 1.1250.
This report will return January 4 2019.
We wish our clients a very merry Christmas and a happy new year!
|Indices||Previous Close||YTD % Change|
|DFM GENERAL INDEX||2509||-25.55%|
UK Benchmark Rates
|3 month||0.90838%||2 year||1.16%|
|6 month||1.03294%||3 year||1.23%|
|12 month||1.16275%||5 year||1.32%|
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