WEEKLY MARKET REVIEW − January 23-27 2016 US and UK Q4 2016 GDP will be the main events this week Forex GBP/USD, Daily The USD last week continued its correction against its major competitors. Last week’s main event was the International Economic Forum in Davos, Switzerland, as well as Donald Trump’s inauguration. These two events had the most impact on financial markets. It is worth noting that at the moment political factors have had a notable impact on the economy. Additionally, traders paid a lot of attention to British Prime Minister Theresa May’s speech concerning the Brexit. Last week’s uncertainty prompted investors to abandon US assets and buy traditional defensive assets such as gold and the yen. This week investors should pay a lot of attention to UK and US GDP data. Stocks USA Dow, Daily Major US stock indexes closed last week in red. The Dow dropped by 0.29%, the S&P fell by 0.24%, while the NASDAQ recorded a fall of 0.34%. Trump’s phrase about the “to expensive dollar” impacted stock markets. However, US Fed Chair Janet Yellen’s speech provided some support for the markets and US dollar. It should be noted that earnings report is still occurring in US. Europe FTSE, Daily European stocks additionally fell, with the FTSE 100 recording the largest decline thanks to fear of a “hard” Brexit. The ECB’s decision to leave the interest rates unchanged additionally impacted the markets. Furthermore decline in oil prices put additional pressure. This week economic policy statements from Donald Trump have the potential to heavily impact the markets. Commodities Brent Oil Futures, Daily Oil fell last week as there was plenty of speculation that major oil producing countries will not adhere to a production limit. Additionally, countries such as Iraq, Libya and Nigeria agreed to the deal, but increased their production volumes anyway. At the same time, the US shale oil producers regularly increasing production, aided by relatively high oil prices. This week the US dollar will drive oil market.