So February has been an eventful one with the Corona virus and Chinese New year really slowing down proceedings. Hopefully not a sign of the year ahead…**head in hands**
GBP
Growth figures have come out as expected over the past week but the Brexit deadline of December 2020 is really at the forefront of all of our minds. Investors are pricing in a risk of Britain failing to agree a trade deal with the European Union hence why we’ve seen GBP drop off.
Will we or won’t we? There isn’t enough rhetoric out there to give any definitive answers as yet so it’s too early to say. However we have been speaking to some of our European based clients and they are extremely pessimistic that we’ll be out with a ‘good deal’ come December. Cue ‘Hard Brexit’ chat come Q4 this year?…
USD
So Trump isn’t being impeached, cue USD strength.
Where do we turn our attention to now? Trade agreements. Watch this space.
EUR
A lot of EUR data this week which will give us a good idea how the EU is fairing, taking into consideration the recent negative press. We will be taking particular interest in the German GDP data this Friday being the manufacturing force that it is.
Have a good start to the week all!