Concerns over the current break down in the US-China trade talks, and Trump announcing higher tariffs, have weighed heavily on the markets this week. The negative sentiment has led to a sell off across the major equity indices.
In the UK, Brexit talks continue between the two main parties, with the Prime Minister hoping to bring her deal back for another vote in the coming weeks, but there continues to be little tangible progress, and speculation continues to grow on the Prime Minister’s future.
The UK will now take part in the EU elections, which is only likely to add to the current political uncertainty.
On the exchanges, sterling remains near the bottom of its recent ranges, whilst volumes remain low.
GBP/USD continues to find some decent buying interest below 1.3000 for now, however sentiment remains weak while we remain below 1.3130. Stronger support lies 1.2850.
GBP/EUR continues to be well supported at 1.1500, while the well-established recent high of 1.1800 continues to hold the topside.
|14/5/19||UK Average Weekly Earns. 3M/YoY||3.5%||3.4%|
|14/5/19||UK Unemployment Rate||3.9%||3.9%|
|17/5/19||EU CPI YoY||1.4%||1.7%|
|Indices||Previous Close||YTD % Change|
|DFM GENERAL INDEX||2672||+5.61%|
UK Benchmark Rates
|3 month||0.80963%||2 year||1.02%|
|6 month||0.91425%||3 year||1.07%|
|12 month||1.06000%||5 year||1.16%|
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