Market Recap

The upcoming months will certainly be painted with disappointing macro releases of the UK economy on the one hand, and on the other hand wishful consecutive new deals of the UK with the rest of the world. GBP is indeed falling. Nevertheless, another probable explanation for the yesterday’s steep GBP decline could be the selection of words at yesterday’s headlines. “Renewed Hard Brexit fears ” is a strong enough headline to drive algo- trading and financial markets crazy.

Macro releases: Yesterday’s rising US Capacity utilization rate proved the FED’s monetary policy right. The latest FED dots imply that the current interest rate is the FED’s floor and no additional rate cuts are expected. The no rate cut scenario throughout 2020 is additionally implied by the current option prices. Today’s economic calendar includes the UK, the European and the Canadian inflation, the US Crude oil inventories and the New Zealand GDP reading.


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