US Federal Reserve – Federal Reserve chair Jerome Powell testified to the ‘House Financial Services Committee’ and the ‘Senate’ this week. Last Friday US job’s data was released, beating market forecasts, causing global equity and bond markets to decline over fears that a rate cut this month would be less likely. However, with inflation remaining low, Powell reiterated the Federal Reserve’s dovish stance, as a cut is still expected this month with a 0.50% cut not being ruled out.
Brexit – The Brexit outlook remains extremely opaque, causing sterling to hit a 2-year low. The threat of a no-deal Brexit looks likely to increase under a new Prime Minister. However, on Tuesday Parliament voted in favour of giving Northern Ireland fortnightly updates on power-sharing, this makes it more difficult to suspend parliament, which could be attempted to push through a no-deal Brexit.
UK GDP – The Office for National Statistics announced on Wednesday that GDP bounced back in May by 0.30%, after a sharp decline in April. This was mainly due to car production, as carmakers had moved their annual maintenance period to April in order to keep production down. April was expected to be the UK’s first month after leaving the European Union, if the 29th March Brexit date had be stuck to.