Nine months after the referendum, the UK finally begin negotiations to exit the European Union. Thousands of EU laws are to be transferred into UK legislation, from workers’ rights to the environment. Prime Minister Theresa May has already hit a roadblock after the attempt, in her letter, to tie security to trade which ran into immediate opposition from European leaders.
In other news, the barrage of Fed speakers continued yesterday as Federal Reserve Bank of Boston President, Eric Rosengren said the Fed should hike rates three more times this year. Markets were expecting two more rate rises this year, however Rosengren’s hawkish comments have put a third on the cards. On the economic docket, the third and final reading of US GDP registered a better than expected 2.1%, giving the Greenback a boost yesterday afternoon.
A busy end to the week as we gain high tier data from both the Eurozone and UK. Firstly, the UK current account, which measures the difference between imports and exports are forecast to narrow. Shortly after, we gain an insight into the Eurozone’s inflation with the release of CPI.