More firms plan relocations after Article 50

The FTSE has had another indecisive day, while the pound confounds many and rallies against the dollar

Will US GDP raise rate hike chances?
Article 50 triggers wave of potential corporate relocations
Team America to the rescue, as Trump takes aim at FX manipulators

It has been another day of FTSE indecision in the wake of yesterday's article 50 activation, but the same cannot be said for the pound, which has enjoyed a day in the sun despite ongoing uncertainty for the UK economy. Today's main event turned out to be the US GDP figures, which shocked markets with a very respectable final reading of 2.1% for Q4. Today's US GDP reading goes a long way to justifying the recent decision from the Fed to raise rates. With rate setter Eric Rosengren calling for a hike every other meeting, we could see another rise sooner than many think.

Just one day after article 50 and it is becoming increasingly apparent that this has been a trigger for a number of firms to set contingency measures into action. Lloyds of London's decision to relocate jobs to Brussels, coupled with rumours of potential relocations for the likes of Citi and JP Morgan do little to inspire confidence in the City of London. There is no doubt that London will be the main loser from the coming two years of negotiations, much in the same way it was the UK's main beneficiary from our EU membership. While the UK's loss may be the EU's gain in the short-term, the long-term picture of a more open, globalised UK should mean that perhaps the EU and the UK will be better off further down the line.

Donald Trump has ensured he remains the man to watch for financial markets, with the US President now taking aim at perceived FX manipulators. This feels like yet another example of the US attempting to overstretch its influence on the global stage. It is one thing questioning the impartiality of a central bank given domestic political pressures, but having global monetary policy decisions being influenced by the US is a step too far.

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