May to present Brexit Bill

Daily Update

Yesterday's Market

• JPY Merchandised Trade Balance
• EUR IFO Business Climate, Current Assessment, Expectations
• USD Housing Price Index & EIA Crude Oil Stocks Change

Yesterday Explained

Merchandised Trade Balance from Japan reported a positive figure early morning giving positive growth to JPY. IFO Business Climate and IFO Expectations reports fell short of expectations in return weakening the EUR. Even though Housing Price Index from USA came out better than expected it failed to give any positive boost to USD.EIA Crude Oil Stocks failed to meet expectations and reported negative level .

Today’s Market

• GBP Gross Domestic Product & Theresa May Presenting Brexit Bill to the UK Parliament
• USD Initial Jobless Claims, Markit Services PMI, Markit PMI services Composite, New Home Sales

Today's Focus

Foreign exchange markets love anything that provides more clarity regarding the Brexit process. UK Prime Minister is set to publish the bill to trigger Brexit in a first reading later today. It will take an extended period to identify whether Brexit will be put into practice, and as a whole, whether Brexit will bring more benefits or adversity to the UK.

If the Quarter 4 UK GDP figure is better-than-expected, it will be more favorable for the UK during the negotiation process with the EU. Across the market, US initial jobless claims report and advance goods trade balance along with New Home Sales could influence the dollar demand.

UK Prime Minister Theresa May is set to visit President Trump on Friday 27th January in Washington – she will be the first foreign leader to visit the new US president. The discussion will, most likely, be comprised of the improvements in the trade and financial relations between the two countries, cuts of bilateral trade taxes. Theresa May expressed in a recent interview with the BBC that Trump would like to build a strong relationship with the UK.