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  • 15JAN
All Eyes on Sterling This Week

Brexit has returned to the headlines with a vengeance in the past week, after a lull over the Christmas period. A key development is that the UK's pro-EU Parliament has begun to assert itself, signaling its opposition to a no deal hard Brexit. However, Parliament seems no closer to reaching agreement on what type of deal it wants to prevent a hard Brexit. There is no clear majority support for other alternatives, from the Withdrawal Agreement, to a Norway plus style close economic relationship with the EU, or a second referendum which would require an extension to the Article 50 deadline.

Theresa Mays vote takes place on Tuesday the 15th. We anticipate sterling volatility leading up to the event and depending on the outcome we will know which direction sterling will be heading.
 
USD ( AED)
The continued partial Federal government shutdown in the US may have implications for the data-release schedule this week. Retail sales for December are due. The government is still in shut down in the US - this is the longest shut down in History, naturally it has softened the Dollar slightly. We await to see the outcome of when Trump will wish to negotiate.
The USD has also weakened on the back of less aggressive rate hike projections for 2019.
 
EURO
ECB President Draghi's speech to the European Parliament on Tuesday may also attract some attract some attention, ahead of the following week's policy meeting.

Written By: 
Sarah Duthie
IFX - Account Manager
15th January 2019

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