29 Dec 2017

Market Brief: Happy New Year

Shaun Garrett

Dealing Team

There’s plenty to reflect on these past 12 months which began with the inauguration of an unlikely president, UK servicing notice on its EU membership and a UK general election.

Today's data releases
  Key levels
No major releases   Support Resistance
GBP/USD 1.3220 1.3520
GBP/EUR 1.1134 1.1566
Market overview

Markets were largely unmoved overnight ahead of the final trading day of the year. We expect normal service to be resumed next week but until then, we expect currencies to remain largely range-bound.

As the year draws to a close, there’s plenty to reflect on these past 12 months which began with the inauguration of an unlikely President, the rise of the anti-establishment movement, UK servicing notice on its EU membership and a UK general election. And that was all in the first half of the year!

Of the many headlines we’ve seen this year, I’m sure many can agree one man has dominated them; President Donald Trump. His intention to drive economic growth through heavy spending on infrastructure got the markets and investors excited at the turn of the year as the hope was that his brand of economics (Trumponomics) would soon ‘turn America great again’. We can agree growth has been healthy, employment remains buoyant whilst the stock market continues to reach new highs. Politically though, things haven’t been particularly smooth for the President as his administration lunges from one scandal to another. Mr Trump has failed in his attempt to repeal and replace Obamacare, however, he’s had more success in recent weeks after winning support from the Senate to write new Tax legislation which has been welcomed by the business community.

There’s plenty to ponder as the new year fast approaches and what themes are likely to dominate. Will Brexit trade talks proceed smoothly? How many rate hikes will we see in the US? And what political storm awaits Trump (or perhaps PM May) in 2018?

Before we turn the page, the Investec Dealing team want to wish you and your families a very happy new year and we look forward to discussing some of these issues with you in the new year. 

Thought of the day

It is the last working day before the New Year for Investec, and of course many are discussing their plans as well as their resolutions! Giving up chocolate, drinking less and joining a gym seem to be the status quo. The best one I’ve heard is to give up social media. You can download an app that tracks how much time you spend on your phone staring at Facebook and Instagram and the results are alarming. What are your new year’s resolutions? Perhaps it’s to get on top of your emails, or to even to look at your FX strategy for 2018 (worth a try!). If this is the case, please give your Investec Dealers a call on 0800 055 6339. On behalf of the Investec Dealing team, we thank you for your business this year and hope that you have a great New Year!

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