The fall of the pound and the single European currency continued, as no one heard any positive news on Brexit. Theresa May said that she intends to meet with the heads of the countries of the European Union to try to get a better agreement that can satisfy the whims of the British parliamentarians. At the same time, it was announced that the vote on the issue of an agreement with the European Union is scheduled for January 21. That is, Theresa May has almost a month to reach new agreements. However, less than a month, because you should not forget about Christmas and New Year, and many are already not up to talking about Brexit and the like. Everyone wants to relax. The most important thing is that, despite the positive words of the Prime Minister, they did not inspire investors. After all, the European Union has already adopted the current version of the agreement, and now they are invited to throw it in the trash and negotiate again, adding some additional parameters to it. Moreover, no one guarantees that what the English desire is what suits the Europeans themselves. The current version of the agreement suits them completely, because it creates economic preferences for them, due to the absence of any trade points in the agreement. An attempt to clarify this issue, especially those that will allow British companies to work freely on the continent, as if there was no Brexit, most likely, will meet serious resistance. It is obvious that Italy or Spain, which have been experiencing economic difficulties for a long time, are interested in British companies moving aside and giving way to their own manufacturers. Yes, and the Europeans will look very stupid. At first pompously accepted the agreement, and then accept a completely different. British parliamentarians, who are more and more persistently talking about a vote of no-confidence in the government and the prime minister, are adding fuel to the fire. That means Theresa May's resignation. This is not surprising, since the parliamentarians have every reason to believe that Theresa May will negotiate anything but trade. After all, she said in plain text that the issue of the border between Northern Ireland and Ireland needs to be resolved, while in Parliament, it is more concerned about trade conditions.
However, such a significant decline in the euro and the pound can not last forever. The rebound was brewing yesterday, but for a number of reasons listed above, it had to be postponed. Today, data on inflation in the US is being published, which should slow down from 2.5% to 2.2%, and this is against the background of the Fed's recent hints that there is a chance that the refinancing rate will remain at the current level. And although stock market indices have begun to recover, yet another slowdown in inflation indicates growing risks that this process may be protracted. So fears that the Fed will revise its plans are not unfounded.
Of course, in Europe, there will still be published data on industrial production, but very few people will pay attention to them. Yes, and they will not be able to bring optimism, since the industry is expected to slow down from 0.9% to 0.8%. But US inflation is an excellent reason for the correction, so that the single European currency can rise to 1.1375.
