Forex Preview: GBPUSD In Focus As US Shutdown Continues and Brexit Vote Looms

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1. GBPUSD In Focus As US Shutdown Continues and Brexit Vote Looms
It’s Day 24 of the the longest partial U.S. government shutdown in history and we are already seeing its effect on the markets. American Airlines (AAL) dipped last week because of lower revenue guidance and weaker-than-expected domestic performance in December, while analysts warned about the effect of the shutdown on airlines. The shutdown could slash job growth by as much as 500K in January and lift the unemployment rate above 4.0%, although federal workers would be considered employed if Congress decides to pay them retroactively. Investors will be looking closely at the GBPUSD pair which will remain volatile over the latest developments in the U.S. and a looming Brexit parliamentary vote on January, 15th. A no-confidence vote by the British Parliament is expected to cause the GBPUSD pair to plunge.*

2. DEB Shares Plunge 19% on Reports That Debenhams Could Axe 90 Stores
Debenhams PLC shares ended the week almost 19% lower on reports that the retail giant could close up to 90 shops in an attempt to avoid administration, after its profits plunged during the year. The turnaround plan, which hopes to “address structural challenge and drive profitable growth”, could lead to 10,000 job losses, according to the Telegraph. DEB shares opened 2% higher on Monday to last trade at £3.990, a far cry from 2015’s high of £94.850.**

3. AUD & NZD Lower On Disappointing China Trade data
The Australian and New Zealand Dollar tumbled against their U.S. counterpart on a set of disappointing China data released earlier today. China’s imports fell 7.6% y/y in December, the first monthly decline since October 2016. Exports also contracted but by a lesser degree, falling 4.4% y/y resulting in a wider trade surplus of $57.06 billion from $44.71 billion in November. AUD/USD declined following the data, dropping to an intra-day low of 0.7179, while it later recover to last trade at $0.7190 as of 7:25 GMT. Meanwhile the NZD also lost team with the EURNZD gaining 0.7% at 1.6858 as of 7:25 GMT.***

You can find and trade all of the above mentioned equities and commodities on BDSwiss Forex/CFD platforms.

*Source: FXStreet Jan 14, 2019 2:48 AM ET
**Source: Forbes Jan 14, 2019 3:53 AM ET
***Source: CNBC Jan 14, 2019 03:07 AM ET

This Week’s Most Important Upcoming Events:

Time (GMT) Cur. Imp. Event Forecast Previous
Monday, January 14, 2019
All Day Holiday Japan – Coming of Age (Adults’) Day
Tuesday, January 15, 2019
Tentative  GBP UK Parliament vote on Brexit deal
13:30  USD PPI (MoM) (Dec) -0.1% 0.1%
15:00  EUR ECB President Draghi Speaks  
Wednesday, January 16, 2019
09:30  GBP CPI (YoY) (Dec) 2.2% 2.3%
13:30  USD Core Retail Sales (MoM) (Dec) 0.1% 0.2%
13:30  USD Retail Sales (MoM) (Dec) 0.2% 0.2%
15:30  USD Crude Oil Inventories -2.800M -1.680M
Thursday, January 17, 2019
Tentative  CNY GDP (YoY) (Q4) 6.4% 6.5%
10:00  EUR CPI (YoY) (Dec) 1.6% 1.6%
13:30  USD Building Permits (Dec) 1.290M 1.328M
13:30  USD Philadelphia Fed Manufacturing Index (Jan) 10.0 9.1
Tentative  USD New Home Sales 569K 544K
Friday, January 18, 2019
09:30  GBP Retail Sales (MoM) (Dec) -0.8% 1.4%

 

This Week’s Upcoming Earnings Reports:

Name             Symbol         Next Earnings Date
Citigroup C Jan 14, 2019
UnitedHealth UNH Jan 15, 2019
JPMorgan JPM Jan 15, 2019
Bank of America BAC Jan 16, 2019
Netflix NFLX Jan 17, 2019
American Express AXP Jan 17, 2019

 

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