UK may head to Plan C or Brexit with no deal

Weekly Report - 04/02/2019

Brexit Alternatives


On Thursday the BoE policy settlement will attract a lot of attention. Members of the MPC are in a worry mode while Brexit ambiguity remains.  There are anxieties over the financial outlook and probably businesses are going to stimulate their relocation beyond UK borders, while the probabilities of a no-deal starting increase once more. UK is probably heading to Plan C. The other option is a no deal exit. BoE opinions on what lies ahead could mean troubles for the Pounds this week.

The Week that was

Last week the markets saw the best January in the last 3 decades. That fact alone supported the investor's trust while Stocks grew to close on firm earnings. Evidence that the FED will pause rate hikes also produced positive attitude and traders rushed back into the market.

Last Thursday the expansion was driven by better-than-expected profits from a mixture of companies, including the much unexpected General Electric but Facebook as well. The Dow Jones Industrial Average closed slightly below the range at 24,999.65 while the S&P 500 rose 0.9% to close at 2,704.09. The Nasdaq Composite was also raised, increasing about 1.3% to 7,281.70.


Main Focus This Week

Important Key reports for the USD hold the November factory orders on Monday and on Tuesday the private sector PMI numbers from the Markit and ISM surveys. As for the important Stats for EUR on Monday are covering the member service sector PMI numbers, the Spanish unemployment numbers, and retail sales figures out of the Eurozone. For the popular GBP, the BoE’s first policy conclusion of the year and the Brexit problem will possibly to be at the center of attention.


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