Key notes for the week ahead: Brexit is the key focus and data events become the name of the game


  • We are entering the realms of data dependency once again and while today's schedule is pretty much void of scheduled calendar events, bar Chinese trade as the main focus, the week ahead is packed and has the potential to create some decent opportunities in volatility.

On the US front, we have US retail sales, industrial production, new home sales, housing starts, factory orders and regional PMI data for January. However, Wednesday’s scheduled retail sales and business inventories numbers could well be delayed due to the U.S. government shutdown that has now entered a record for length. 

Brexit saga

Elsewhere, Brexit is likely to be the main driver. This is now crunch time for the Brexit saga as the clock runs down to when the UK is due to leave the EU, scheduled for 11pm UK time on Friday, 29 March 2019. As we count down the days to the meaningful vote to be held on the 15th January where Theresa May is doomed to fail in getting her deal through parliament, on Friday, markets got long of the pound in expectations that Brexit will be delayed until at least July while concluding that Theresa May is doomed to fail in getting her deal through parliament. Brussels is likely writing off 29th March as the deadline for exiting the EU given the domestic opposition facing PM May. The deal is very unlikely to pass (15%), setting off a sequence of events that will require a Plan B by 21 Jan. Markets are now expecting a request from London to extend article 50 in the coming weeks. An EU official was reported saying, “Should the prime minister survive and inform us that she needs more time to win round parliament to a deal, a technical extension up to July will be offered.” 

Draghi in focus

Meanwhile, in Europe, ECB President Draghi appears at the European Parliament on Tuesday. His comments will be closely watched. "ECB speakers last week held to the line that the basic story of expansion remains in place and that the ECB may wait until spring’s next macroeconomic projections to make a new policy assessment. We continue to dispute how long the ECB can hold back from addressing forward guidance on interest rates in this climate. A sharp drop in manufacturing and broader growth momentum is increasingly evident across Europe, which brings the ECB’s forecast of steadily increasing inflation under the spotlight," analysts at ANZ Bank explained. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD bouncing modestly on disappointing US Consumer Confidence

The shared currency remains pressured by the idea that the ECB will come out with massive stimulus measures in September. US Michigan Consumer Confidence down to 92.1 brakes dollar's gains.

EUR/USD News

GBP/USD retreats sharply after approaching 1.2200

The GBP/USD pair came under selling pressure after flirting with weekly highs, as a dismal US confidence report brought back risk-off. GBP/USD still up for the week and above the critical 1.2100 level.

GBP/USD News

USD/JPY: Greenback makes modest progress against Yen, near 106.30

The demand for Yen as a safe-haven currency has been weak in the last three days. The levels to beat for bulls are at the 106.30 and 106.55 resistances.

USD/JPY News

Gold gives back territory towards a 23.6% retracement

Gold prices were a touch lower by the end of the week, falling -0.68% having travelled between a high of $1,528.00 to a low of $1,503.87, ending the NY session around $1,513. 

Gold News

Four Signs of A Bear Market

I am a believer that the Universe gives you signs. That may sound a bit crazy, but these three charts are three more signs of a bear market. The top chart is the GLD exchange traded fund.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •