Trade war rhetoric and Brexit

Weekly Report - 23/07/2018

Brexit and US Trade Dominate


Last week’s news was dominated by the same old news, that being trade wars and Brexit. The US dollar saw great strength throughout the week as the Chinese yuan weakened to a one year low on trade war concerns.

The Week that was

Aside from trade war jitters, hawkish talk from Fed President Jerome Powell helped boost the dollar last week. The central bank chief was testifying before the US Senate and affirmed the Fed’s plans to gradually raise interest rates “for now,” but warned of risks from an escalation of trade tensions. Meanwhile, there was a lot of focus on the UK last week as the Brexit saga continues, with little progress on the type of deal Britain will have when it leaves the EU next year.


Main Focus This Week

This week’s economic calendar his full of important events. Europe and the US release PMI data, while the ECB announces monetary policy on Thursday. The main highlight of the week will be the US GDP for the second quarter which is due on Friday. Meanwhile, this is a huge week for earnings announcements, as big companies such as Alphabet start the week off with Q2 earnings results, with many more throughout the week from Boeing, Coca Cola, Facebook, Ford, Amazon, McDonalds, Spotify, Twitter and so on.


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