Brexit obviously continues to dominate the news, as we focus on next Tuesday’s parliamentary debate on the amendments and way forward from here.
Meanwhile, UK earnings data this week were relatively strong, with wages growing at their fastest pace since 2008, and unemployment down to 4%.
In Europe, the ECB yesterday kept policy on hold as widely expected, with Draghi warning of increased risks to the growth outlook.
Whilst in the US, the government shutdown continues, and will inevitably weigh on first quarter economic growth.
China growth has slowed to its lowest in three decades, with the ongoing trade negotiations with the US adding uncertainty.
On the exchanges, sterling has rallied strongly over the last few days, on increased hopes of a softer Brexit.
GBP/USD pushed up towards 1.3150, its highest level since November. There is some selling interest there, with support now lying at 1.2900.
GBP/EUR hit 1.1600, but there remains strong selling interest above that level. There continues to be good support at the 1.1250 level.
GBP/USD – 1-year chart
|30/1/19||US FOMC Rate (Upper Band)||2.50%||2.50%|
|1/2/19||UK Markit PMI Manufacturing SA||54.2||53.5|
|Indices||Previous Close||YTD % Change|
|DFM GENERAL INDEX||2514||-0.63%|
UK Benchmark Rates
|3 month||0.92563%||2 year||1.16%|
|6 month||1.04313%||3 year||1.22%|
|12 month||1.16988%||5 year||1.32%|
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