The following few days will be important for markets from a number of perspectives. The main angles which will be covered this week include: Brexit, the Federal Reserve’s thoughts on 2019 and the health of the US economy following a lengthy government shutdown.
From the UK, it’s another interesting week ahead in the Brexit saga with a couple of very controversial amendments being put through Parliament on Tuesday. The first and most anticipated is Labour MP Yvette Cooper’s, hers is an amendment to extend Article 50 by 9 months if no deal can be forged prior to the 29th March. The second amendment is one which asks PM May to head back to Brussels and request that the Irish backstop is removed from the deal. No surprises, this has been tabled by a Conservative MP.
From the United States this week we’ll have the first dose of the Federal Reserve and Jay Powell following December’s turbulent rate increase meeting. The central bank will hold an announcement and press conference on Wednesday evening. No change is expected but all the focus will be on the Fed chair’s language and any hints he gives on when the central bank may opt to hike rates again.
In respect to the health of the US economy, with the government temporarily reopening after Friday – we saw the Republicans and Democrats strike a deal (which did not include any funding for a border wall), we’ll now begin to see bits of economic data drip through which previously could not be released. This week’s most important release from the US will be Friday’s jobs report. It will most likely be heavily distorted following the 35 day shutdown so it’s possible the market chooses not to give this report much credence.
Written by Viv Savani. 8:36am, January 28th 2019
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