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24 марта, 12:12

Healthcare Vote Postponed Due To Republican Disagreement

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The vote on President Trump’s first bill proposal since taking office, to repeal Obamacare and replace it with the American Health Care Act, was postponed abruptly from Thursday evening to Friday March 24, due to severe disagreements within the Republican party. President Trump and Republican leaders have been attempting to convince more Republicans to support the new bill. However, it seems to be difficult to reverse the situation in a short time period. Trump stated that if the bill fails to pass he would leave the Obamacare in place (against his election pledge). The Republican party holds the majority in the US Congress in both the House of Representatives and the Senate. The Democratic minority will vote against the Bill. The Bill requires at least 215 votes to pass from the House’s 430 current members. Therefore, the maximum of defections is limited to 22 votes from the Republican party’s 237 representatives. The dollar index has been oscillating in a range between 99.30 – 99.80 set in the past two days. If the Bill fails to pass, markets would likely lose confidence in Trump’s administration and his other policies (such as tax-cuts and regulation reform) which will likely weigh on USD and US equities. The dollar index will likely fall and test the significant support level at 99.00. Fed Chair Yellen made a speech on Thursday at the Community Development Research. Unexpectedly, she mainly talked about financial education for children and teenagers without mentioning monetary policy and/or the economic outlook. Dallas Fed President Robert Kaplan (an FOMC voting member) said on Thursday that “the Fed should patiently remove monetary policy accommodation, as the US economy is making progress and the job market is tight, and suggesting three rate hikes this year”. With that said, the Fed will likely raise rates two times more until the end of the year. Conversely, Minneapolis Fed President Neel Kashkari (an FOMC voting member) commented that “inflation remains below the Fed’s target”. He was the only one who dissented a rate hike in last week’s FOMC rate decision. The Scottish parliament postponed a second Scottish independence referendum vote due to the terror attack at Westminster. The vote was postponed until Tuesday 28 March, which is only one day ahead the triggering of the Brexit process. We can expect volatility on GBP and GBP crosses over the period. Today we will see the release of US durable goods orders and core durable goods (Fed), accompanied by Canadian CPI and core CPI (Feb), at 12:30 GMT. Fed presidents are scheduled to deliver speeches today per the following schedule: 12:00 GMT Chicago Fed President, an FOMC voting member, Charles Evans 13:05 GMT St Louis Fed President, an FOMC member, James Bullard 14:00 GMT New York Fed President, an FOMC permanent voting member, William Dudley

23 марта, 12:14

USD Hovers Around Support Levels Ahead of Yellen’s Speech and Health Care Bill

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Today the US Congress will vote on whether to repeal Obamacare, which is President Trump’s first bill proposal since taking office. President Trump has warned Republicans that, if the healthcare reform bill fails to pass, they will lose their seats. However, if the new healthcare bill passes, that means many Americans pay a much higher amount of money on medical spending. For the markets the concern is, that if the bill fails to pass, President Trump’s other policies, such as tax-cuts and regulation reform would also encounter hurdles. These concerns weigh on USD and US equities. USD continued falling on Wednesday. The dollar index broke a significant support line at 99.50 and hitting a 7-week low of 99.32. USD bulls attempted to recover the level early this morning. The next significant support is at 99.00; if this level is broken we will likely see a further USD sell-off. Fed Chair Yellen is scheduled to make a speech at 12:45 GMT today, Thursday March 23rd, at the Community Development Research, which is the major focus amongst this week’s Fed speeches. The latest French presidential election polls show a tight race between the three candidates: Macron, Le Pen and Fillon. Even with Fillon being charged with creating fake jobs and being put under formal investigation. The right-wing candidate, Le Pen, has stated her attempt to take France out of the EU following Brexit. Market concerns, over President Trump’s policies and the French presidential election, are resulting in Investors turning to safe havens. The weakening of USD has also pushed gold prices up. Spot gold hit a 3-week high of 1251.20, testing a significant resistance level at 1250 on Wednesday evening. The Reserve Bank of New Zealand (RBNZ) kept rates unchanged at 1.75% which was in line with expectations. NZD/USD remains unchanged as the RBNZ stated that “monetary policy will remain accommodative for a considerable period because the global economic uncertainties remain substantial and there is no hurry to alter policies”. Today will see the release of UK retail sales for February at 09:30 GMT. This is followed by US initial jobless claims (for the week ending March 10) at 12:30 GMT, Yellen’s speech at 12:45 GMT and US new home sales for February at 14:00 GMT. Minneapolis Fed President Neel Kashkari (a FOMC voting member) will make a speech at 16:30 GMT followed by Dallas Fed President Robert Kaplan (a FOMC voting member) at 23:00 GMT.

22 марта, 12:17

Dollar Tumbles on Trump Uncertainty and Position Closing

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USD plunged on Tuesday, the dollar index breaking the significant support line at 100.00 and further testing the next major support at 99.50. The downtrend was held temporarily above that level. Last week the dollar index fell by 1.3%, marking the worst weekly performance in the past 8 months. Regardless of the rebound in February, the dollar index has retraced approximately 2.1% since the beginning of this year because of profit-taking pressure post the US presidential election surge. Recently, several investment banks have turned their USD outlook from bullish to bearish, and cut their USD long positions. Market concerns over the uncertainty arising from the Trump administration also pose downside risk on USD. The recent Fed comments were not as hawkish as markets expected. Additionally, the ECB’s recent hawkish tone also weighing on USD. The price range between 99.00 – 99.50 of the dollar index is likely to provide a stronger support. However, if this zone is broken, we will likely see a further USD sell-off. On Tuesday, New York Fed President William Dudley (a FOMC permanent voting member) stated that “bank culture needs to be improved”. However, he did not comment on the future prospective of rate hikes. This comment was followed by Kansas Fed President Esther George (a non-voting member) stated that “it is a critical time for the Fed to remove some of monetary stimulus to prevent the economy from overheating”. However, the Fed needs to be cautious on tightening. She also made no comment on future prospective rate hikes. UK inflation data for February was released on Tuesday March 21st. UK CPI rose to 2.3%, with core CPI rising to 2.0%, for the first time surpassing the central bank’s 2% target since January and July 2014 respectively. UK inflation has been mainly lifted by weak GBP and the rising cost of fuel. GBPUSD rallied more than 70 points after the release of the data testing the next significant resistance level at 1.2500. GBP has seen its longest bullish streak since January helped by the increased market expectations on a prospective rate hike led by the recent events: BoE’s MPC member Forbes voted for a rate hike in March, and the above 2% inflation readings. However, weak wage growth is one of the BoE’s major concerns over rate hike. The UK still needs to face 2-years of political uncertainty before the final Brexit deal is made with the EU. Bank of England President Carney commented that “markets shouldn’t overact on one month’s data”. It will take an extended period for the markets to have a broader scope for the UK economy performance during Brexit negotiation. Today is relatively light on economic data releases. US EIA crude oil inventory (the week ending March 17) will be released at 14:30 GMT. The Reserve Bank of New Zealand interest rate decision, at 20:00 GMT.

21 марта, 12:03

Brexit to be Triggered on March 29

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The date to officially start the Brexit procedure was finally confirmed yesterday. UK Prime Minister, Theresa May, will trigger Article 50 of the Lisbon treaty on Wednesday March 29, starting the 2-year Brexit negotiation process with the EU. The timetable is in line with her plan to begin “divorce proceedings” by the end of March. Theresa May will formally notify the EU Council President, Donald Tusk, with a letter next Wednesday. Tusk is expected to present draft Brexit guidelines to the European Union’s 27 member states, within 48 hours of the UK triggering Article 50. The member states are expected to hold a Brexit summit within 4-6 weeks. Following the news, GBP dropped against USD and EUR. On Monday, GBPUSD fell approximately 100 points from a 3-week high of 1.2435, breaking a support level at 1.2400, hitting the intra-day low of 1.2334. This morning the price has rebounded after testing the support line at 1.2340. Today, at 9:30 GMT, we will see the release of a series of UK inflation data for February. It will likely affect the strength of GBP and GBP crosses. There are 9 Fed presidents and FOMC members scheduled to have a speech this week per the following schedule: Tuesday March 21 10:00 – 11:00 GMT New York Fed President, a FOMC permanent voting member, William Dudley 16:00 GMT Kansas Fed President, Esther George 22:00 GMT Cleveland Fed President, a FOMC member, Mester Thursday March 23 12:00 GMT The Fed Chair Yellen 18:00 GMT Minneapolis Fed President, a FOMC voting member, Neel Kashkari 23:00 GMT Dallas Fed President, a FOMC voting member, Robert Kaplan Friday March 24 12:00 GMT Chicago Fed President, a FOMC voting member, Charles Evans 13:05 GMT St Louis Fed President, a FOMC member, James Bullard 14:00 GMT New York Fed President, a FOMC permanent voting member, William Dudley Chicago Fed President Evans stated on Monday that “the economy is on a good course”, with the Fed on track to raise interest rates twice more this year. If inflation picks up, four consecutive rate hikes could be possible. President Trump’s administration and fiscal policy would add to further rate hikes. This week is relatively light on economic data releases. Therefore, the Fed presidents’ prospective hawkish / dovish comments are likely to become the major driver of USD moves. This morning, the USD index is trading below the significant level at 100.00. The Fed hawks, George and Mester, will likely make more hawkish comments today. Regardless, downward pressure on USD is still heavy.

20 марта, 12:02

Sterling Hits 3-week High Against Dollar

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GBP saw its third consecutive session of gains last Friday because of an MPC (Monetary Policy Committee) member, Kristin Forbes, voting to raise rates this month despite Brexit uncertainty and risks to the economy. However, from a broader scope, the uncertainty associated with the Brexit procedure, until the final Brexit deal is done, and the turmoil over a second Scottish referendum, is likely to pose downside risks on the UK economy and GBP. The UK parliament finally passed the Brexit Bill on Monday March 13th. UK Prime Minister Theresa May is expected to trigger Article 50 of the Lisbon treaty at the end of March or in early April, starting the 2-year negotiation process over the Brexit deal with the EU. Scotland’s First Minister, Nicola Sturgeon, has called for a second Scottish independence referendum vote, to be held in 2018 or 2019, before the final Brexit deal is sealed. The Scottish Parliament will vote on whether the First Minister should be given the authority to seek a Section 30 order from Westminster on Wednesday. Although the SNP is not the majority party in the Scottish parliament, the Green party also supports Scottish independence. The UK Prime Minister expressed last week that this is not the right timing for a second Scottish referendum and she will not allow the referendum to carry out before the Brexit citing that “the country should be working together, not pulling apart”. Today is relatively light on economic data releases. We will see the release of a series of UK inflation data for February, beginning at 09:30 GMT on Tuesday. It will likely affect the strength of GBP and GBP crosses. US Secretary of States, Rex Tillerson, visited China for the first-time meeting China’s president Xi Jinping in Beijing on March 19th. Despite the sensitive issues between the US and China, such as trade protectionism, currency manipulation, and North Korea’s nuclear program, Xi Jinping stated that the mutual benefits between the two nations outweighs the conflicts, cooperation is the only right choice for long term development. The trip paves the way for the prospective summit between Trump and Xi Jinping in April.

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17 марта, 13:28

USD remains weak ahead of G20 Financial Meeting

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Friday March 17th sees the start of a 2-day meeting of the world’s top finance ministers in Germany. The fear among G20 members is the continuing US protectionism, though the recent elections in the Netherlands have indeed provided some optimism that Europe is moving towards more liberal policies. Chancellor Merkel will be meeting with President Trump today with the hope that the G20 Nations can get support for free trade and avoid getting into any trade wars with the United States. This point was raised by U.S. Treasury Secretary Munchin following a meeting in Berlin on Thursday with German Finance Minister Schaueble. Mnuchin insisted that Trump supports free trade as long as it is “fair,” stressing that countries should not manipulate their currencies, since such actions jeopardize economic growth. He also reaffirmed his support for a strong USD over the long term as being good for economic confidence in the U.S. Schaeuble commented that the U.S. & Germany agreed that, “despite all the differences”, they had to push forward in cooperating to ensure sustainable global growth and prosperity. Other G20 countries that Trump has stoked tensions with, such as China and Mexico, will also be looking for clues as to the status of their relationship with Washington. Beyond Trump’s trade-and-economic agenda, another focus of the Baden-Baden meeting will be the steps aimed at promoting sustainable global economic growth and the means of driving structural reforms forward. The finance chiefs are also to consider measures for improving the investment conditions in African countries. The Group of 20 represents two-thirds of the world’s population as well as 85% of global economic output and 80% of trade. Friday is relatively light on economic data releases although we may see some price volatility in USD with the release of US Industrial Production at 13:15 GMT (consensus: 0.2%, previous: -0.3%) and the University of Michigan Sentiment Index release at 14:00 GMT (consensus: 97.0, previous: 96.3).

16 марта, 12:07

Dollar Retreats Post FOMC Due to Profit-Taking

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The Fed announced a rate hike by 25 basis points yesterday, with rates in a range of 0.75% to 1%, in line with market expectations. Fed Chair Yellen stated that It is appropriate to gradually remove accommodation, as the US economy is going well. Gradual rate hikes will be appropriate over the next few years, to sustain the economic expansion. Based on the economic projection made in December the medium economic projection is, essentially, unchanged. The medium projection for the federal funds rate is 1.4% to the end of 2017, 2.1% to the end of 2018, and 3% to the end of 2019. Therefore, we can expect two more rate hikes from the Fed by the end of this year, with a rate hike in June or July being highly likely. Medium projection for GDP growth is 2.1% in 2017 and 2018, and down to 1.9% in 2019. Medium projection for unemployment is 4.5% in Q4 and over the next two years. The medium projection for PCE is 1.9% this year and is expected to rise to 2.0% in 2018 and 2019. Yellen commented that the economy continues to expand at a moderate pace with the labor market seeing continuous improvements. The unemployment rate was 4.7 percent in February which near its recent low. Solid income gains have supported household spending growth. The Fed also expects job conditions to strengthen further. Business investment has firmed; with business sentiment at a favorable level. Personal consumption expenditure rose to nearly 2% in January largely driven by energy prices. The Fed expects core inflation to move up and overall inflation to stabilize around 2% over the next few years. The Fed expects the economy to expand at a moderate pace over the next few years. Nevertheless, USD plunged after the release of the rate decision due to profit-taking pressure, as markets have largely priced in since February. The fall of USD pushed other major currencies up. Spot gold surged from the significant support level at $1200, touching a 1-and-a-half week high of $1228.76. EURUSD surged more than 120 points hitting a 5-week high of 1.0745. GBPUSD surged more than 110 points hitting a 2-week high of 1.2308. Be aware of further profit-taking pressure and retracements post these substantial surges. Earlier today, during the early Asian session, the Bank of Japan announced that their monetary policies remain steady which was in line with expectations. Rates remain unchanged at -0.1%, 10-yr bond yields remain at a level near zero & asset purchases will remain at about 80 trillion JPY a year. The BoJ stated that “Japan’s economy has continued its moderate recovery”. Moreover, the BoJ didn’t give hints on any future rate hikes resulting in rates likely remaining at current levels for an extended period as it hasn’t seen a sustainable pickup in inflation. This morning, the Swiss National Bank announced that interest rates remain at -0.75%. The Bank of England will announce its rate decision and monetary policies at 12:00 GMT today. Market expectations …

15 марта, 11:35

March Fed Meeting Is Coming, Will Yellen Give a More Hawkish Outlook ?

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The Fed will announce its interest rate decision and monetary policies, at 18:00 GMT today. The FOMC press conference follow at 18:30 GMT. Markets have been expecting a March rate hike for a long time, the expectations have been largely priced in since February. Therefore, even if the Fed Chair Yellen announces a rate hike today, it would be in line with market expectations. The Fed will likely raise rates by 25 basis points this time, with rates in a range of 0.75% to 1%, which is the third rate hike in a decade. However, now what matters more is how many times the Fed will raise rates later this year, and its latest economic projections. In the December FOMC meeting the Fed had projected three rate hikes in 2017. The Fed’s two main objectives are full employment and stable prices. The recent US labour market data shows the labour market remains solid. Inflation has also seen an uptrend since August 2016. We can expect volatility; however, the volatility might not arise from the rate decision, but more from the updated economic outlook and new projections. If Fed Chair Yellen makes a relatively hawkish comment, then USD will likely keep on strengthening. Nevertheless, if the Fed surprisingly doesn’t raise rates today, then it will also likely cause great market volatility with the likelihood of USD selling pressure. Japanese industrial production was released this morning for January (YoY) reaching the highest level in 2017. We will see the release of a series of UK and EU labour market data for January and February, between 09:30 – 10:00 GMT today, which will likely cause volatility to both GBP and EUR. US retail sales and CPI data for February will be released at 12:30 GMT, which will likely cause some volatility to USD and the USD crosses, prior to the FOMC meeting. On Thursday 16th March, there will be three central banks announce rate decisions and monetary policies. The Bank of Japan at 02:00 GMT, followed by the Swiss National Bank at 08:30 GMT and finally, the Bank of England at 12:00 GMT. The market is predicting that the three central banks will likely keep rates unchanged.

14 марта, 11:32

Divergence Between Fed and BoJ

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The March FOMC meeting will be held for two consecutive days from today. The interest rate decision will be announced at 18:00 GMT on Wednesday 15th March. 7 out 10 FOMC members, including the Fed doves Yellen and Brainard, made some hawkish comments lately. The US labour market data in February released last Friday outperformed expectations. Per the CME’s FedWatch tool: the current probability of a rate hike in March has jumped to a peak of 95.2%. We can expect that the Fed will announce two to three rate hikes this year. If the Fed does not adhere to raising rates they are highly likely to face a credibility issue. Following the Fed, the Bank of Japan will announce interest rate decision and monetary policies at 02:00 GMT on Thursday 16th March. Despite weak domestic demand, Japanese Q4 GDP growth in 2016 was revised up to 1.2%, showing four straight quarters of growth, indicating the Japanese economy expanding at a faster pace. Improved export conditions, corporate profits and capex (which benefits from the weakening of the yen post the US presidential election) is the major factor that has contributed to economic growth. Japanese consumer prices returned to positive territory in January. The core inflation rate rose for the first time in a year. The markets are expecting that Japan’s inflation will pick up a level above 1% by the end of the year; however, this is still below the Bank of Japan’s 2% target. The Bank of Japan will likely keep rates steady in negative territory and continue its quantitative easing programme until it sees a sustainable pickup in inflation. The divergence between the Fed and the BoJ’s monetary policies will likely result in USD strengthening against JPY. The UK parliament has passed the Brexit bill. The House of Commons overturned the amendments proposed by the House of Lords that guarantees the rights of EU citizens in the UK and gives parliament a “meaningful vote” on the final Brexit deal, by 335 votes to 287. The House of Lords accepted the decision by 274 to 118. The UK government now has no hurdles on the way out of the EU, ready to trigger the Article 50 of the Lisbon Treaty. GBP/USD plunged to an 8-week low of 1.2108 this morning during the European session. Noticeable data to be released today are as follows: (GMT) 07:00 German CPI for (Feb) 10:00 German ZEW Economic Sentiment & Current Situation (Mar) Eurozone Industrial Production (Jan) Eurozone ZEW Economic Sentiment (Mar) 12:30 US PPI and Core PPI (Feb) Noticeable data to be released on Wed morning are as follows: (GMT) 04:30 Japanese Industrial Production (Jan) 09:30 UK Claimant Count Change (Feb) UK ILO unemployment Rate (Jan) UK Average Earnings including and excluding Bonus (Jan) 10:00 Eurozone Employment Change (Q4)

13 марта, 11:54

Dollar Retreats on Profit-Taking, How Will Central Banks Drive Markets

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Following the release of the US labour market data for February last Friday: Headline non-farm payrolls figure rose by 235K in February, beating expectations of 190K. The previous reading in January was revised upwardly to 238K, from 227K. The unemployment rate dropped slightly to 4.7% in February (4.8% in January) which was in line with expectations. Average hourly earnings (YoY) rose by 2.8% in February. The previous reading in January was revised upward to 2.8% (from 2.5%). The average hourly earnings (MoM) rose by 0.2% in February, which was weaker than expectations of 0.3%. The previous reading in January was revised upwardly to 0.2%, from 0.1%. Labour force participation rose slightly to 63.0% in February, from 62.9% in January. In terms of sector breakdown, construction added 58,000 new jobs, seeing the largest increase in a decade. Manufacturing jobs grew by 28,000, seeing a 3-year high. Other sectors with noticeable job gains included professional and business services (37,000), private educational services (29,000), health care (27,000) and mining (8,000). The US labour market data in February outperformed expectations. The 3-month NFP average figure was around 199K, which was above the 6-month NFP average number of 189K, indicating the US labour market condition has remained solid. The unemployment rate has seen a continuous decline from 9.4% in early 2011 to the latest figure of 4.7%. The improvement in the unemployment rate pushed average earnings up since early 2015. The labour force participation has also seen an uptrend since the beginning of this year. 7 out 10 FOMC members, including the Fed doves Yellen and Brainard, made some hawkish comments lately. Moreover, the US labour market data for February outperforms. There is a general rate hike in March. Per the CME’s FedWatch tool: the current probability of a rate hike in March has jumped to 93% after the release of the recent labour market data. Contrasting with the better-than-expected US labour market data for February, the dollar index plunged more than 70 points, hitting a one-and-a-half-week low of 101.16, after the release of the data, due to profit-taking pressure. Markets have priced in the expectations for a March rate hike since February. Spot Gold rebounded last Friday, after hitting the lowest level of 1194.91 since 31st January, breaking the significant resistance level at 1200. EUR/USD surged around 100 points, post the data, touching the significant resistance level at 1.0700. AUD/USD rebounded from the psychological support line at 0.7500. Economic data for today is thin, however, there will be four central banks announcing interest rate decisions and monetary policies in turns this week: The Fed (18:00 GMT on Wed.), the Bank of Japan (02:00 GMT on Thu.), the Swiss National Bank (08:30 on Thu.), and the Bank of England (12:00 on Thu.). We can, therefore, expect greater market volatility this week.

10 марта, 14:19

The Last Market Focus Prior to March FOMC Meeting

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Keep a very close on the crucial US labour market data (for Feb) due to be released this afternoon at 13:30 GMT. It will include non-farm payroll headline and revision figures, unemployment rate and average hourly earnings. Apart from the significant non-farm payroll figure, we also need to pay attention to other labour market data to obtain a broader scope of the overall US labour market performance. The US labour market data release for Feb is the last variation and market focus for a potential rate hike before the upcoming scheduled FOMC Mar 14-15 meeting. Last week 7 out of 10 FOMC members made hawkish comments. Notably, the two Fed doves, Chair Yellen and FOMC permanent voting member Brainard, both made a hawkish speech. The market expectations on a March rate hike have been largely priced in since February. Per the CME’s FedWatch tool: the current probability of a rate hike in March has jumped to 88.6%. The average figure of non-farm payroll in the past 6 months has been around 189K, which is similar to the 190K estimate for Feb. If the upcoming NFP figure outperforms, or is in line with expectations, then we can expect a probable rate hike in March. However, if it is lower than 140K, then it will likely lower the probability of a rate hike. Be aware that, according to past experience, the market trends sometimes reverse within 1-2 hours after the initial move.

25 января, 13:32

How the UK US GDP and Trump-May Meeting will Affect the Markets ?

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This Thursday and Friday, 26th and 27th January, will see the release of the two sets of crucial economic figures: the initial estimates of the UK and US Q4 GDP. The UK Q4 GDP (YoY and QoQ) will be released at 09:30 GMT on Thursday, while the US Q4 GDP (QoQ annualized) will be released at 13:30 GMT on Friday. The quarter-on-quarter Q1 to Q3 UK GDP final readings were 0.4%, 0.7% and 0.6%, showing a modest fall post the Brexit vote. The year-on-year final GDP readings were 2%, 2.1% and 2.2%, showing a moderate uptrend. The market expectations on the UK Q4 GDP show a further decline of 0.5% (QoQ) and 2.1% (YoY) respectively, as a result of Brexit uncertainty. Continued Brexit uncertainty over Britain’s economic prospects has influenced the business climate. Some corporations have moved or are moving their headquarters, and are cutting the number of their employees based in the UK. The UK Supreme Court announced yesterday that it will require the parliament’s approval to trigger Article 50 to leave the EU. It will take an extended period to identify when Brexit will be put into practice, and as a whole, whether Brexit will bring more benefits or adversity to the UK. If the Q4 UK GDP figure is better-than-expected, it will be more favourable for the UK during the negotiation process with the EU. Despite the market consensus of 2.1% for the US Q4 GDP (QoQ). The quarter-on-quarter Q1 to Q3 US GDP final readings were 1.1%, 1.4% and 3.5%, showing a robust economic recovery. 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, the North Atlantic Treaty Organization (NATO) and Syria. Theresa May expressed in a recent interview with the BBC that Trump would like to build a strong relationship with the UK. As it is likely that the UK will no longer be a member of the EU, actively seeking new alliances is crucial.