Britain made of Sterling Stuff
- Sterling stays strong even with 'Terrorist Threat'
- Oil drops below $50 a barrel
- Make or break for Trump's healthcare bill
Sterling stays strong even with 'Terrorist Threat'. The Pound saw an initial drop after the announcement of the incident in Westminster but a rallied back strongly after the assailant had been stopped.
On initial reports the Pound dropped to the low of the day against the US dollar (1.2424) and the Euro (1.1494). With no reports of any other incidents the Pound recovered broadly to trade flat for the day. This shows that investors have seen resilience in the Pound, as similar incidents in the past have caused investors to pull out of the pound and turn to safe haven assets.
Brent Crude fell through $50 for the first time in 2017 after surging US inventories cause a pessimistic turn for OPEC.
On January 1st members of OPEC came to an agreement to reduce the supply of oil aiming to reduce the global glut and help stabilise oil prices). Rumours have started that the fall in price could hurt the Middle East and cause potential political turmoil with the US moving into this weekend’s OPEC Meeting. As the US is the biggest importer of crude oil, any news for this weekend or sudden change in the oil price could cause an increased volatility in the US Dollar.
Make or break for Trump's healthcare bill.
It is time for Trump’s healthcare bill which will attempt to roll back many parts of Obamacare.
The vote in the House of Representatives is decided today with only 23 out of 237 ‘No’ votes needed to sink the bill. This is Trump’s first large change to US infrastructure and many will be watching to see how much support he really has in Congress. A ‘NO’ result could have negative connotations for the US, with the realisation that the Trump administration may struggle to implement their plans.
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