FxWirePro: Market to remain volatile as big event updates set to hit

In last trading day of the last week, the U.S. benchmark stock index S&P500 rose sharply by almost 3.3 percent and CBOE VIX, which is a measure of implied volatility and often referred to as the fear gauge has declined from 36 marks before Christmas to 22.3 marks as of today, however, do not expect the markets to calm down easily as updates from big events are set to hit this week.

• This week, the UK Prime Minister Theresa May would table the Brexit deal for discussion and debate in the parliament, after which, the final date for the voting on the deal would be announced. The voting is expected later this week on early next week.
• This week also, the trade negotiators from the United States and China are sitting down in Beijing to resolve the trade and other bilateral issues such as the force technology transfer. The American delegation, led by deputy US trade representative Jeffrey Gerrish, arrived in China the previous day for talks with their vice-ministerial level Chinese counterparts. This is the first face to face talks between the negotiators of the two sides since President Trump held a meeting with President Xi of China on the sidelines of last year’s G20 meeting in Argentina. Though the meeting is marked by prominent absentees such the U.S. trade representative Robert Lighthizer and Chinese Vice Premier Liu He, who is the top negotiator from the Chinese side.
• In addition to that, the U.S. Federal Reserve is set to trigger volatility with the release of December meeting minutes and Fed Chair Powell’s speech on Thursday.

As the news hit, we expect the financial markets to react with a higher level of volatility.