The EU announced today there has been enough progress in the Brexit talks to allow the UK to move the discussions onto the next phrase. The next phrase of talks will look at the long-term relationship between the EU and UK, discussing topics such as trade and security. However, EU leaders have warned the next stage will be tougher, causing the Pound to decline.
Across the pond, the US Retail Sales posted better than expected yesterday at 0.8%. The bullish figure was helped by the start of the holiday season and strengthening wages and provides further support for the idea that the Fed may announce three rate hikes next year. The Weekly Unemployment Claims figure also posted a bullish 225k, down from 236k last week. However, the Greenback has remained unchanged as there is a level of uncertainty behind the fate of the US tax reform, as more Senators announce they won’t be supporting the bill.
Today will see a quiet end to the week, as the markets continue to digest the week’s central bank meetings. The Bank of England Chief Economist, Andy Haldane, will be speaking at the International Rome Conference on Money, Banking and Finance.