Banda Asia: Brexit White Paper Helps Prices Rise GBP breakthrough1.26

British Prime Minister Theresa May stated yesterday that she has accepted the request of British MPs to announce the Brexit plan, which will be released through a white paper; If a Brexit agreement cannot be reached, other arrangements will be sought. Meanwhile, regarding the matter of visiting the United States. She said that her visit to the United States demonstrated the special relationship between the two countries and was pleased to be able to meet with Trump as soon as possible. She also stated that she is not concerned about having an open and candid dialogue with Trump, and seeking a trade agreement with the United States would prioritize the UK. All relevant parties must continue to support the Paris Climate Agreement. The UK High Court previously ruled that Prime Minister Theresa May cannot trigger the Brexit process without parliamentary approval. In this context, Theresa May will submit a fast track legislative document this week regarding Brexit to ensure that her Brexit plan is on track as previously envisioned. Meanwhile, the market also expects Theresa May to1month26Publish a concise proposal on a daily basis to enable oneself to invoke the provisions of the EU Treaty50Fully authorized in terms of the discretion of the clause.


In addition, German Economy Minister Gabriel stated yesterday that the upward trend of the German economy is expected to continue this year. However, given the increased uncertainty related to Brexit and the new government policies in the United States, he expects the pace to slightly slow down. Gabriel stated in an interview that the German economy will continue to rise this year. The unemployment rate in Germany is at its lowest level since reunification, and due to the reduction of working days, the growth rate of the German economy will slightly slow down this year. He believes that opening up the German economy is the right approach to increasing employment and improving economic growth. Gabriel said that Brexit and Trump's protectionism will not boost economic growth. In the current situation, German companies should seize the trade opportunities in China and Asia, and maintaining an open economy is the correct way to create more job opportunities and economic growth. He also believes that Germany needs to invest more in traditional infrastructure, but also in digital infrastructure. Private sector investment in Germany has always been weak, and there is a need to enhance the driving force of research and development investment.

The data that needs attention today is China12Annual profit rate of industrial enterprises above a certain scale per month, fourth quarter in the UKGDPInitial annual rate, UK12monthBBANumber of mortgage loan permits for house purchase, UK1monthCBIRetail sales difference, as of the United States1month21Number of initial claims for unemployment benefits in the current week, United States12Initial monthly wholesale inventory rate, US12Yearly total sales of new homes after seasonal adjustment and in the United States12The monthly consultation chamber leads the indicator of monthly rate. In addition, the speech delivered by the Governor of the Bank of England, Sir John Corney, is also worth paying attention to.


USD Index

The US dollar index fluctuated downwards yesterday and fell100.00Gateway, spot exchange rate trading at99.90Nearby. In addition to profit taking exerting some pressure on the exchange rate, investors' concerns about the uncertainty of Trump's new policies and the possibility of Trump's trade protectionism rhetoric damaging the US economy are the main reasons for the pressure on the weakening of the US dollar index. However, short covering and well performing US economic data during the period limited the downward space of the exchange rate. Today's Focus99.50Nearby support conditions, upper pressure100.30Near.


euro/dollar

The euro fluctuated and rose yesterday, with a slight increase in the daily chart. The current exchange rate is trading at1.0750Nearby. The weakening of the US dollar index is the main reason supporting the rise of the euro, driven by investors' concerns about the uncertainty of Trump's new policies and concerns that Trump's trade protectionism rhetoric may damage the US economy. However, overnight European and American stock markets generally rose, and the market's risk sentiment warmed up, limiting the rebound space for financing the euro. Today's Focus1.0850Nearby pressure situation, supported below1.0650Near.

pound/dollar

The pound rose sharply yesterday, breaking through1.2600Pass and refresh6Weekly high, spot exchange rate trading at1.2630Nearby. In addition to the weakening of the US dollar index providing some support for the exchange rate, the UK Prime Minister has confirmed that the release of a formal white paper on the Brexit plan is the main reason supporting the rebound of the pound. In addition, the UK Prime Minister and US President will hold their first meeting on Friday, and the expectation of a trade agreement between the UK and the US is also an important factor supporting the rebound of the pound. Today's Focus1.2700Nearby pressure situation, supported below1.2550Near.