Last night the Pound surged following reports that the European Union and the United Kingdom have finally reached a deal on the Brexit divorce bill.
After being dragged down earlier in the day following negative Brexit comments from Mark Carney, the Pound reclaimed ground as reports suggested that the final divorce bill will be in the range of €45 and €55 billion depending on how it is calculated.
Uncertainty surrounding Brexit negotiations have stifled the Pound’s recovery since the referendum, so this is a welcomed boost for UK Importers. However, the Pound’s performance over the following 12 months will hinge on the outcome of other Brexit negotiations as the divorce bill is only the first hurdle.
Today’s data includes GDP data from the USA this afternoon followed by speeches by Mark Carney (which may induce a Pound Sell-off) and then a testimony to Congress from outgoing Chair of the US FED Janet Yellen.
On Thursday the Eurozone is scheduled to release inflation figures for the month of November and employment figures for the month of October.
UK and US manufacturing production data for November will be announced on Friday.
10.00 am – Eurozone business confidence (November): expected to rise
1.30 pm – US GDP (Q3, 2nd estimate)
3.00 pm – US pending home sales (October)
8.55 am – German unemployment rate (November)
10.00 am – Eurozone inflation (November, flash) and Unemployment Rate (October)
9.30 am – UK manufacturing PMI (November)
3.00 pm – US manufacturing PMI (November)