There is very little to report on Tuesday following the very quiet Monday session, partly due to the US holiday, and most pairs are pretty much where they opened. The US$ is generally firm without having done very much while stocks and commodities are unchanged. The only real news items of note have been the IMF warning of a downgrading of the global growth outlook from 3.7% in 2018 to 3.5% in 2019, citing China as an area of concern, while UK PM Theresa May has been announcing her Brexit Plan B, in which she again rejected a second referendum and an article 50 extension. Beyond a move to waive a planned fee for EU nationals living in the UK to apply for settled status after Brexit, there has been very little change to her existing plan, and her updated arrangement has merely seen the PM entrench her existing position. Parliament are due t vote on the updated version next Tuesday.
There will be no Asian economic activity today so it could be a quiet start to the session although Europe will be busier with the focus being on the UK Unemployment data (exp Headline Rate; 4.1%, Claimant Count +20K, Average Earnings; 3.3% 3 months- Jan) and the German/EU ZEW Economic Sentiment Survey (Germany: exp Sentiment -18.4, Current Situation 43.4%). The US will have just the Existing Home Sales (exp -0.8%), Business Inventories (exp 0.5%) and the weekly API Weekly Crude Oil Stock Inventory. Note also that the Davos World Economic Forum Annual Meeting (WEF) begins today. Have a good day.
Economic data highlights will include:
Tue: World Economic Forum – Davos, UK Unemployment, Public Sector Net Borrowing Requirements, German/EU ZEW Economic Sentiment Survey, US Business Inventories, Existing Home Sales, API Weekly Crude Oil Stock Inventory
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