Stocks Higher As Trade Talks Gain Momentum
FOREX.com February 22, 2019 7:04 PM
The meeting between Trump and Liu He is at 14:30 EST. so European markets will be closed by then. Any positive headlines could dictate a strong finish for US markets into the weekend and a positive start for Asia and Europe next week.
Friday was another big day for data in the eurozone. The euro has slipped below $1.1350 after a mixed bag of releases. The German IFO business climate slightly missed expectations with 98.5, eurozone inflation contracted by -1% month on month in January, slightly less than forecast. Investors will now wait patiently for Draghi’s speech at 15:30. We already know that ECB policy makers are taking a more dovish stance amid growing concerns over the health of the global economy. More dovish comments from the ECB President could see the euro target $1.13.
Brexit uncertainty to pull pound sub $1.30?
The pound extended losses for a third consecutive session on Friday as Brexit fears rattled investors. A renegotiation of the Brexit deal never really took off and officials on both sides are downplaying the chances of a breakthrough. Should Theresa Mat return to Parliament empty handed next week, there is a good chance that she will be forced to extend Article 50 and hand over the reins of the Brexit process to Parliament. Given the heightened levels of uncertainty the outlook for the pound remains negative. Sterling could quickly find itself below $1.30 once again.
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