Time of uncertainty for U.K.

Weekly Report - 20/01/2020

Brexit Approaching

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This is U.K. week and it’s the week before the country leaves the E.U. With U.K departing from the EU on 31st of this month it starts a volatile 11-month transition phase that will include a lot of pressures and uncertainties for the U.K. economy. The approaches however, that the U.K. will take should reduce the stress on the Pound by establishing trade arrangements with allies beyond EU boundaries. Now for the economic calendar – it’s another fairly packed week for the pound. On Tuesday Employment numbers are expected to give us a feel on how the employment sector is progressing, but wage growth and claimant count figures will probably have the biggest influence.

Week that was


Last Thursday Alphabet the parent company of Google, one of the biggest search engines in the world accompanied the other three technology giants into the trillion dollar club by tapping the $1 trillion in market value. By reaching that remarkable level the company now becomes the 4th U.S. technology company to achieve this following Microsoft, Apple, and Amazon. Amazon recently has pushed back to about $930B. According to FactSet if we combine Facebook, the five most high-priced U.S. tech corporations are now worth a colossal $5.2 trillion. This is approximately 17% of the S&P 500.

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Main focus this week


The focus this week falls on the U.S sector. On Wednesday, December’s existing-home sales figures are expected to provide a reduced impact on the greenback. Existing home sales figures most of the times create volatility due to inventories. On Thursday, the weekly jobless claims numbers may also have a reduced impact on the Dollar.

On Friday the Prelim private sector PMI numbers for January are going to cover things up. The service sector PMI will have the biggest influence on the day. What is going to be the key attraction this week however is Trump’s impeachment trial that will be in full motion. We can anticipate lots of chatter, though the possibilities of being removed from office remain weak to none.

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