Brexit uncertainty continues to dominate, with little progress this week, despite parliament holding indicative votes and May offering to resign.
The prime minister still hopes to get her deal passed, but failing that, further parliamentary indicative votes seem likely next week – although much remains unclear, and any breakthrough remains elusive for now.
On the exchanges, volatility remains high, whilst market conviction remains low. The uncertainty has begun to weigh on sterling over the last few days.
GBP/USD has dropped below 1.3100, although we continue to expect strong buying interest ahead of 1.3000. On the topside, the recent high around 1.3350 is the initial level to watch.
GBP/EUR is holding up relatively well on a generally weaker Euro, but has dropped from the recent high of 1.1800. Strong buying interest remains ahead of 1.1300.
The evolving Brexit story continues to dominate the headlines and market sentiment, and next week is again set be critical to the outcome.
|1/4/19||UK PMI Manufacturing SA||52.0||51.3|
|1/4/19||EU CPI Estimate YoY||1.5%||1.5%|
|2/4/19||UK Markit/CIPS Construction PMI||49.5||49.7|
|3/4/19||UK Markit/CIPS Services PMI||51.3||51.0|
|3/4/19||UK Markit/CIPS Composite PMI||51.5||51.2|
|5/4/19||UK Halifax House Prices 3Mths/Year||2.8%||2.3%|
|Indices||Previous Close||YTD % Change|
|DFM GENERAL INDEX||2631||+3.99%|
UK Benchmark Rates
|3 month||0.83325%||2 year||0.94%|
|6 month||0.95825%||3 year||0.98%|
|12 month||1.06188%||5 year||1.05%|
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