15/ 12/ 2020

Sterling Jumps as Brexit Talks Go an Extra Mile

It was a bullish start to the week for the European majors on Monday. Apprehension from Friday turned into hope on Monday as the markets responded to news from the weekend of plans to continue Brexit negotiations.While Boris Johnson continued to talk of a likely no-deal Brexit, there was also news of progress on some of the key issues that remain. A major stumbling block, however, is the policing of any Brexit deal, with Britain unwilling to be tied to EU laws and regulations. Economic data from the Eurozone was on the lighter side, leaving the markets to focus on Brexit news in the early part of the day.

Looking ahead, U.S economic data, COVID-19, and chatter on Brexit and from Capitol Hill will be in focus. Economic data from China was skewed to the positive this morning.

14/ 12/ 2020

Q1 Budget Setting in an uncertain Economic landscape

Economic fluctuations can significantly impact your budget forecasting.

13/ 12/ 2020

Week Ahead | Central Banks, Economic Data & A New Brexit Deadline to Drive the Market

It was a busy week, with Brexit and COVID-19 news, the ECB, and a lack of progress on Capitol Hill weighing on the European majors. Sterling was in free fall last week after both UK and EU admitted that a no-deal Brexit is more likely than not. Negotiation deadline was ended to end of Sunday. Euro and Dollar, followed as the next weakest and focus turned to rally in commodity currencies. 

This week, we’ll get a look at GDP reports in Japan and the UK, as well as central bank announcements from the ECB and Bank of England. For the near term, reactions to Brexit talks will be the biggest focuses in the early part of the week. In particular, movements in European-Sterling crosses would be watched closely. As for the rest of the month, the next move in stock markets, another up leg or a correction, would decide how Dollar flares before year-end.

07/ 12/ 2020

Week Ahead | U.S Nonfarm Payrolls, COVID-19 Vaccine News, and Brexit in Focus

Selloff in the Dollar was the main theme in the currency markets last week. With the arrival of coronavirus vaccines, the global economy looks set to return to normal next year, despite some cautious comments from central bankers. 

Sterling hit a 2.5-year high on Friday before succumbing to a dollar recovery. Although better than expected construction sector PMI, declining new virus cases and plans to ease restrictions are all reasons for a rally, the primary catalyst is hope for an 11th hour Brexit deal. After failed agreements in London this week, Prime Minister Boris Johnson and European Commission President Ursula von der Leyen will speak directly on Saturday in what will be one of their final chances to make a deal before their year-end deadline.

The major economies are showing better numbers in the third quarter, but Covid-19 is still hampering economic growth. This week, we’ll get a look at GDP reports in Japan and the UK, as well as central bank announcements from the ECB and Bank of England.With the UK set to begin vaccinations this week and the FDA to review the Pfizer Inc. vaccine, production and logistics news will be of particular interest.