The big picture – No news is good news – 21st January
With the US close-down some of the data is not available. This might well be the reason that we saw money running to both the US dollar and the equity markets. We saw all equity exchanges rally and all but the pound losing ground to the dollar.
With no agreement being close at the moment, perhaps we will see more of the same this week. We have two major banks reporting, the ECB & BoJ, the former may struggle to find much in the way of positives. Traders will be watching the flash manufacturing PMI to see if the downward trend is continuing.
Traders are pricing in better news for the pound. Whilst a no deal looks further away, getting any sort of deal looks difficult with the leader of the opposition playing silly games with the aim to cause a general election.