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UK Business Confidence Slumps

British employers’ confidence in the economy falling ahead of Brexit. Recent surveys show how firms are cutting down on hiring and investment.

UK employers' confidence in economy slides before Brexit - REC

Recruitment and Employment Confederation’s (REC) confidence survey dropped to -20 in the three months to January, which is down -14 points. The REC jobs outlook surveyed 611 companies between Nov. 1 and Jan. 25.

Bank of England Governor Mark Carney said on Tuesday the Bank of England would probably give more support to the economy if it suffers the shock of a no-deal Brexit. - Reuters

Could this monetary stimulus help appreciate the GBP?

Policymakers have said that after a no-deal Brexit they might need to raise rates because the likely sharp fall in the value of the pound, new tariffs, disruption to trade and less investment by companies would stoke inflation pressures.

The rally in the GBP value recently is showing promising values of short opportunities. Waiting for key daily and weekly levels to use as resistance in confluence with the LogicStrategy™ could be a good call for a great short opportunity. However, bare in mind monetary stimulus can actually cause the GBP to appreciate.

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