Important week for U.K.

Weekly Report - 22/07/2019

UK - New Future Awaits


The new U.K. British Prime Minister and the new head of the Conservative Party will be announced this week. The actual Brexit plan may be also be published this week making the GBP more interesting to watch. Investors are anticipating the no-deal Johnson to start making some important moves that will shape the new future of the U.K. There is also a probability that the European Union will return to the discussions.

The Week that was

Last Wednesday the U.S. stock index futures recorded a more limited momentum as traders waited for the earnings. On Wednesday afternoon Netflix dropped almost 11% after-hours after the company’s Q2 earnings announcement.  It is likely that the cause for the decline was because Netflix's international net earnings were 2.8 million against the analyst's expectations. The estimated number was closer to 4.8 million. Netflix is accusing several circumstances like price advances in some countries.


Main Focus This Week

One of the main drivers this week will be pressing the EUR on Thursday, while the ECB will be releasing its July monetary policy decision.  The FED’s dovish position has surely released the opportunity for Mario Draghi to have a more positive approach towards EUR. Another important driver will be the developments after Iran seized a UK tanker. This could go from serious to more dangerous, which could boost crude oil prices in the week ahead. On the U.K front, Boris Johnson continued to be U.K's favorite to get the chair, despite the announcement that he is favoring the no Brexit deal.


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