The Pound strengthened across the board during yesterday’s session after Theresa May announced the government would set out their Brexit plans in a formal policy document. The bill is expected to rushed through both Houses of Parliament within weeks in order to meet the Prime Minister's deadline for triggering Article 50 by the end of March.
Adding to Sterling’s strength were hopes that Mrs May’s first meeting with Donald Trump would pave the way for a US trade deal. The meeting is set to take place this weekend.
The Confederation of British Industry said that our factories are gearing up to expand capacity to cope with a surge in home-grown and overseas demand for their products, reporting strong order books and rising output.
The CBI said exporters’ competitiveness had been boosted by the Pounds depreciation since the Brexit vote last June, but more expensive imports would eventually push up prices through their impact on business costs.
A German business survey released on Wednesday morning revealed that morale fell unexpectedly in January, hitting its lowest level since September, in a sign that company executives were less upbeat about the growth prospects of Europe's largest economy at the start of 2017.
The Munich-based Ifo economic institute said its business climate index, based on a monthly survey of some 7,000 firms surprisingly fell to 109.8. The report showed that German companies expressed greater satisfaction with their current business situation, but were less optimistic about their six-month business outlook.
09:30 – GBP – Preliminary GDP is forecast to decrease to 0.5%
13:30 – USD – Unemployment claims are expected to increase to 247K