As we have previously stated on numerous occasions, the markets are currently under the influence from geopolitical concerns. Investors are very cautious about the rapid rise of populism across the globe especially in the 'united' states of Europe. Upcoming elections are being carefully eyed by the elites with many of them biting their fingernails at the potential outcome.


So, as Trump is inaugurated, the lack of clarity on fiscal policy combined with a "protectionist" theme has driven markets into more uncertainty. Fears of trade wars (that benefit nobody) immediately surfaced. Trump also announced the building of a wall on the Mexican border. He seems so hell-bent on putting this wall up that he could possibly pick up the builder's trowel himself and start laying bricks!


At 6pm central European Time today, the world will witness something that twelve months ago thought was impossible. Donald Trump will be inaugurated as the 45th President of the U.S and all eyes will be on his first speech in front of hundreds of thousands of people at the Capitol.


Cable has sunk further down the pole in the last 24 hours mainly due to the market anticipation of Theresa May's speech today with the expectation of detailing exactly how Brexit will be served out.
Last night however, her speech was leaked which led to cable dipping under 1.20 for the first time since October's infamous "flash crash".
Given that the speech is now out in the open we feel that movement in cable is largely priced in and it is now possible to see it move higher when May actually appears to speak.

"Hard" Brexit on the horizon

It's been an interesting week so far.
The GBP started the week getting a bit of a smashing after Theresa May's Sunday announcement that the UK cannot simply keep "bits" of the EU membership upon exiting. This spooked investors somewhat into thinking a hard Brexit is on the horizon. GBP/USD crashed down to well below the 1.21 handle during the early week's trading.

It's started to heat up...Happy new year everyone

Despite this week being a short and thinly traded one to start off with, it's certainly started to heat up mid-week.


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