We have a very busy week ahead of us, with USD-traders fixing their gaze on the FOMC decision, the US employment data for January, as well as the 1st estimate of the nation’s GDP for Q4. We also have a two-day round of trade negotiations between the US and China. In the UK, the main event is likely to the parliamentary vote over UK PM Theresa May’s Brexit proposal, as well as amendments put forward by lawmakers. As for the Eurozone, attention is likely to fall on the 1st estimate of the bloc’s GDP for Q4, as well as the preliminary inflation prints for January.
Monday appears to be a relatively light day with no major economic releases or events scheduled on the agenda.
On Tuesday, the main event is likely to be the parliamentary vote over UK PM Theresa May’s new Brexit proposal, as well as amendments put forward by lawmakers. After the deal agreed with the EU was rejected massively by UK MPs, PM Theresa May promised to be “more flexible” in future talks with MPs over how the nation will depart from the EU. That said, Jeremy Corbyn, the leader of the Labour party, said he will not join talks unless May rules out a no-deal Brexit, something she didn’t. On Wednesday, headlines suggested that the Labour party is “highly likely” to support Yvette Cooper’s amendment, which includes a nine-month extension to the Article 50, while the following day, new reports noted that Northern Ireland’s DUP decided to support May if her new plan includes a definitive end date to the Irish backstop.
All this background suggests that everyone agrees a chaotic departure needs to be avoided, and thus the question is...
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