Rational Thinking – Crunch week for Brexit

This week:

Parliamentary debate on Brexit withdrawal agreement
2 big defeats for May
May now has to seek Parliament’s approval for ‘no deal’ preparation funding
In the case May is defeated on Tuesday, she has 3 days to show a plan B
Increased speculation on a General Election in the aftermath of the vote
Corbyn said a general election as being the number 1 priority
GDP data came in above expectations, 0.2% against a previous of 0.1%


Release of December’s FOMC Meeting Minutes
Minutes revealed several policy makers were in favour of keeping interest rates steady
Fed member Bostic wouldn’t rule out the possibility of cutting interest rates
China and the US extended trade talks for an unscheduled 3rd day


Disappointing German trade data
Regional Industrial Output Data in Germany fell for 3rd straight month
Fall in consumer confidence in France

Next week:

GBP: Tuesday sees Parliament vote on Brexit withdrawal agreement
Consumer Price Index (YoY) (Dec) expected to fall to 2.2% from 2.3%

USD: Retail Sales Figures ex Autos (MoM) (Dec) expected to remain at 0.2%

EUR: Eurozone Consumer Price Index (YoY) (Dec) expected to remain at 1.4%