The UK made history yesterday as Prime Minister Theresa May sent a letter that will trigger Article 50. May handed the letter to President of the European Council, Donald Tusk invoking Article 50, an act which has now started two-years of bitter divorce talks with the EU. Theresa May said that there is “no turning back” as she formally triggered Article 50. Donald Tusk said that he will have a proposal for the Brexit negotiating mandate on Friday, so we could see high levels of volatility at the end of the week.
Across the pond, Fed speakers continued to address the markets. Federal Reserve Vice Chairman, Stanley Fischer suggested that two more rate hikes this year “seem about right”. Fed Chair Janet Yellen also spoke earlier this week, signalling that the US labour market still has many challenges on the horizon. On the economic docket, the US released their Pending Home Sales. The figure exceeded expectations of 2.3% posting an 11 month high of 5.5%.
The US release their third and final reading of GDP this Thursday. US GDP has exceeded market expectations every quarter since June 2015. GDP in the States is forecast at 2%. However, with the track record we could see this beat expectations once again.