- Bank of England on hold no doubt
- Hell Bent May travels to Brussels
By David Johnson
Yesterday, European Council President, Donald Tusk neatly illustrated one of the reasons a lot of Brits voted to leave the EU in his arrogant, ill-mannered remarks regarding hell and brexiteers. Meanwhile, Theresa May is seeking further concessions from the EU and Jeremy Corbyn is laying out his terms, whilst no one wants a border in Ireland and no one wants a border between the UK and Ireland and the merry-go-round continues.
Sterling suffering from all sides
Sterling is looking as dizzy as the rest of us and is largely being buffeted by movements beyond the influence of UK data. We will get the Bank of England’s interest rate decision and statement. No change is expected from the Bank of England (BoE) to the UK’s 0.75% base rate, but their take on the effects of Brexit et al will be of interest (excuse the pun).
US Dollar dips on lower interest rate talk
The US Dollar weakened a little when former Federal Reserve Chair, Janet Yellen, suggested the next rate move may be lower if the global slowdown starts to infect the US economy. If the US thinks it might avoid that kind of infection, it has another thing coming. This afternoon brings little more than the weekly jobless claims data, which is so volatile that it is almost meaningless from a trader’s perspective; and we will have a speech from one Federal Reserve Chairman.
More economic warning signs from Germany
In Europe, the Italian Deputy Prime Minister met with representatives of France’s Yellow Vest protestors, much to the chagrin of the French Foreign Minister. We also had yet another warning sign from German industry as industrial production contracted by 0.4% last month against a forecast of 0.8% growth. Italian retail sales took a hammering in December and we await the European Central Bank’s economic bulletin to see what they make of the latest wave of negative Eurozone data. We will also get the EU’s economic forecast this morning… for what that’s worth. Their forecasts have not proven particularly reliable in the past.
Prepare for Yen movement
There is a smattering of Japanese data due overnight, so those with Yen requirements may wish to set out their stall in advance of that data.
And on this day in 1964, a four piece band from Liverpool landed in JFK airport in New York for their first US tour. They were called The Beatles. I wonder what happened to them?