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Inflation and Brexit will continue to play on Cable

Last updated: May 3rd, 2017 at 09:58 pm

With just six weeks to go until the UK referendum, the Brexit debate is becoming increasingly tense. Both sides have subsequently been quick to jump on the comments of Bank of England Governor Mark Carney. Remains have clearly focused on the significant concerned that the Bank of England has laid out for the UK economy in the event of a Brexit, with unfavourable impacts on growth, inflation and unemployment. However the Leave camp have been quick to point out the apparent lack of balance in the views of the central bank that is meant to be a body that is independent of political bias. The Brexit debate is having a pronounced impact across UK assets and this is only set to intensify as the polling day of 23rd June approaches. With inflation for both the US and UK this week any further Brexit development will impact sterling and play out through Cable this week. US inflation could also drive speculation of the timing of the next Fed rate hike, but what is the market expecting?

What is the outlook for Forex markets as the dollar has rebounded in recent weeks, what is driving the move and can it continue? We undertake a technical analysis of Euro/Dollar and Sterling/Dollar which will be two key markets that traders will be looking at this week. We also look at the key aspects of the equity markets and whether we are on the brink of a significant breakdown. What are the key levels to watch out for? We also do a technical analysis of key Wall Street and apparent Fed barometer, the S&P 500, along with the FTSE 100 Index. We round up with a look at key commodities and bonds markets whilst also looking at the technicals on key markets of gold and Brent Crude oil.

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At Hantec Markets Ltd we provide an execution only service. Any opinions expressed by analyst Richard Perry should not be construed as investment advice or an investment recommendation. This report does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. Forex and CFDs are leveraged products which can result in losses greater than your initial deposit. Therefore you should only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved, seeking independent advice if necessary prior to entering into such transactions.