News
- Theresa May’s government was handed a sure defeat on Tuesday by a stunning, more than expected, 230 majority and this meant the certainty of a no-deal Brexit has jumped manifold given the lack of a real alternative plan in the pipeline. The EU for its part has stated it would not renegotiate and President Macron was quoted as saying, “We went as far as we could.” Dutch PM was more positive as he said, “It does not mean we are in a no-deal situation.”
- A contingency plan released on Tuesday is calling back an estimated 46,000 employees who have been furloughed due to the political stalemate between Congress and President Trump. This is seen as an attempt to limit the impact of the government shutdown although Democrats are saying President Trump is about to break the law.
The focus of attention
- Mark Carney, the Governor of the BoE will testify to MPs on the UK’s financial stability and the different Brexit scenarios that could take place. The UK parliament will also hold a confidence vote (at 7pm UK time) on the current PM, Theresa May, after yesterday’s key vote.
Expected events. All times GMT.
- 07:00 Germany will release the December CPI.
- 09:30 UK will release the December CPI and PPI.
- 10:00 Italy will release the December CPI.
- 13:30 U.S. will release Retail Sales and Business Inventories data.
Technical Analysis
- EUR USD is on a race to the bottom on the short 1-minute view and has broke all minor support levels. The next support to be tested is 1.1392. Expect further weakness if prices cross this psychological level.