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OVER TO YOU MR. PRESIDENT

At 6pm central European Time today, the world will witness something that twelve months ago thought was impossible. Donald Trump will be inaugurated as the 45th President of the U.S and all eyes will be on his first speech in front of hundreds of thousands of people at the Capitol.

MAY'S SPEECH LEAKED !!

Cable has sunk further down the pole in the last 24 hours mainly due to the market anticipation of Theresa May's speech today with the expectation of detailing exactly how Brexit will be served out.
Last night however, her speech was leaked which led to cable dipping under 1.20 for the first time since October's infamous "flash crash".
Given that the speech is now out in the open we feel that movement in cable is largely priced in and it is now possible to see it move higher when May actually appears to speak.

"Hard" Brexit on the horizon

It's been an interesting week so far.
The GBP started the week getting a bit of a smashing after Theresa May's Sunday announcement that the UK cannot simply keep "bits" of the EU membership upon exiting. This spooked investors somewhat into thinking a hard Brexit is on the horizon. GBP/USD crashed down to well below the 1.21 handle during the early week's trading.

It's started to heat up...Happy new year everyone

Despite this week being a short and thinly traded one to start off with, it's certainly started to heat up mid-week.

What becomes the story THEN for stocks???

So as Christmas approaches we've seen some chunky moves across currencies with dollar, yen, pound and euro all seeing some action.

DOW JONES 20,000??

With most of the major risk factors now out of the way for the end of the year we anticipate a slightly quieter end to the year's trading.....but upsets are always likely in the present economic climate. The DOW is within a whisker of 20,000 but the Trump induced rally seems to be losing some of its fizz now. Four Interest rate rises in the U.S. during 2017 are now being priced into the markets following Janet Yellen's comments. The EUR/USD has now fallen below the psychologically important level of 1.05....making parity in the near future a very real prospect.

How high will the markets go?

So, another day another high in stocks (which seems to be the theme recently). Somehow we can't seem to put the memories of 2008 behind us....who will call the 'top' this time? How high will the markets go?
Cable dropped today due to a combination of a positive U.S. jobless report which matched forecasts and weak UK manufacturing production posting it's biggest decline since February.
Add on the legal arguments of Brexit in the Supreme Court, cable barrelled below the 1.26 level.

What is around the corner?

After last week's almost 2% gain, cable continued it's impressive run of form on the release of inflation data out of the UK which beat forecasts. However uncertainty remains on the terms of Brexit and further information being released on Trump's fiscal policy as well as rhetoric at the Fed's meeting next week (even though an interest rate hike has already been priced into the markets).

It’s a big day!

All eyes have turned to the referendum in Italy on Sunday with a government defeat a very distinct possibility (again, if the polls are to be believed).
Should Renzi be defeated expect political instability in Italy.....yet again.
As a result of defeat then expect the euro to resume it's demise.

Thankful? Sit back and watch the drama unfold!

Happy Thanksgiving to everyone in the States today. No financial news from there so quieter day in trading.
Gold has been beaten up quite badly since the presidential election losing 8% in this time period due to overwhelming dollar strength and a 95% chance of an interest rate rise next month. However there is plenty of uncertainty in Trump's policies and this could lead to a temporary (and we mean temporary) weakness in the dollar to give gold a short lived respite from it's recent demise........Don't expect it to last though.

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