Sterling rallied to another fresh post-Brexit high overnight on optimism surrounding Brexit. Lord Jim O’Neill (Former Tory Treasury Minister) gave the Pound a small boost with optimistic economic outlook comments. O’Neill said growth forecasts look set to be boosted with a global outlook stronger than anticipated. O’Neill cited global growth, improved productivity and rebalancing government policies to focus on the north of England and places outside of the capital, as more important than Brexit. UK growth is said to decrease on average by three per cent lower by 2030 than if it had stayed in the bloc, O’Neill said “if that’s the worst that Brexit will deliver, then I wouldn’t worry about it.”
Across the pond, the US government are back open for business, at least until February the 8th. A deal was reached in the Senate yesterday, where Majority Leader Mitch McConnell agreed to address Democrat concerns about protection for young undocumented immigrants. The deal on immigration will continue to be the hot topic leading up to February 8th and therefore we could see some USD movement with news surrounding this policy.
A raft of high tier data will be released tomorrow from the Eurozone and UK. Firstly, UK unemployment rate, claimant count and average earnings are all set to hit the wires at 9:30am GMT. Expectations are for average earnings and the headlines jobless rate to remain sticky, whilst the claimant count is forecast to drop from 5.9k to 2.3k. In the Eurozone, Manufacturing and Services PMI are both scheduled for release, with both figures expected to remain in expansion territory.