The Brexit uncertainty continues, with parliament looking for an amendment to the backstop, and the EU insisting there will be no renegotiation. Prime minister May will now come back to parliament by Feb 14 latest, with an updated plan. With time now fast running out, various hugely different outcomes all still remain possible.
In the US, the Fed kept interest rate policy on hold as expected, with the committee saying they will be patient before raising rates further.
US – China trade talks seem to have made some positive progress, with negotiations ongoing.
On the exchanges, the dollar has sold off across the board on the rather dovish Fed meeting, whilst sterling has held on to its recent strength.
GBP/USD tested 1.3200 earlier this week, its highest level since October. We expect strong selling interest at 1.3250 initially, whilst 1.3000 provides short-term support.
GBP/EUR, having failed at the 1.1600 level, has drifted lower, although we still look to buy on dips to 1.1250.
Focus today will be on the US jobs data due at 1.30pm.
|4/2/19||UK Markit/CIPS Construction PMI||52.8||52.5|
|5/2/19||UK Markit/CIPS Services PMI||51.2||51.0|
|7/2/19||UK Bank of England Bank Rate||0.75%||0.75%|
|Indices||Previous Close||YTD % Change|
|DFM GENERAL INDEX||2567||+1.46%|
UK Benchmark Rates
|3 month||0.91200%||2 year||1.10%|
|6 month||1.02700%||3 year||1.15%|
|12 month||1.16688%||5 year||1.25%|
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