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The UK, US and the Eurozone in the week ahead

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The final full week of 2019 is predictably disrupted by the Christmas holidays.

UK: Can the Pound recover?

The pound has suffered a rather sharp wake-up call since the election. Giddy at the sight of a Tory majority, the currency shot up to multi-month, multi-year highs. And then the realities of what that meant set in, Boris Johnson making it clear he was chasing a hard – potentially even no-deal – Brexit.

That caused sterling to shed all of its post-exit poll growth, leaving it on a downward slope as the year beings to wrap up. Can it recover this week? Christmas is going to make that tricky, carving up the economic calendar until there’s not much left for investors to chew on.

US: Dow Jones free to keep rising?

With a ‘phase one’ trade deal agreed, the Dow Jones has been free to repeatedly hit fresh all-time highs. It’s hard to see anything really challenging the index’s position this week, unless that is a particularly Scrooge-like reversal from either the US or China regarding the agreement.

Whether it can substantially build on its current highs, meanwhile, may be dependent on how festive investors are feeling heading towards what is going to be an election-dominated 2020.

Eurozone

Like in the UK and US, the Eurozone’s week is contorted around Christmas. That will make the region even more in thrall to whatever the Dow Jones et al. are doing than normal.

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This article is brought to you in association with Spreadex. All opinions expressed in this article are from the author and do not necessarily represent the opinions of The Armchair Trader. You can find out more about Spreadex products and services here, or find more articles from Connor Campbell here.

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This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

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