Brexit continued to dominate the market headlines, as Brexit Secretary, David Davis and the Chancellor of the Exchequer, Phillip Hammond go to Germany to meet with German business leaders to request an economic partnership. However, the EU have warned the UK cannot ‘cherry pick’ their deal with German Chancellor, Angela Merkel, showing her opposition to a UK ‘managed divergence’ as the UK try to ‘have its cake and eat it.’
UK manufacturing production posted better than expected at 0.4%, up from the previous reading, whilst industrial production also rose from the previous reading to 0.4%. The rise in industrial production was helped by the increased demand for energy as the outside temperatures declined. The goods trade balance registered worse than expected at -12.2b, down from -10.9b last month. The overall positive data provided little support for the pound as the markets still raise concerns over the UK Government reshuffle and Brexit talks.
Across the pond, Canada will be releasing the building permits figure for December, this afternoon. The building permits figure, which is expected to post -0.7%, looks at the total value of new building permits which have been issues, giving a gauge on further construction. In the US, the import prices figure will be released, expected at 0.4% as well as crude oil inventories.