• Angela Merkel has stepped up pressure on Theresa May over Brexit by saying that the European Union must consider limiting UK access to the single market if it fails to accept free movement of EU citizens.
The German chancellor repeated her mantra that there must be no negotiations based on "cherry picking" of the Union's four freedoms of movement for capital, goods, services and people.
Mrs May fuelled speculation that Britain was heading for a "hard Brexit" outside the single market in an interview on Sunday in which she said she was not aiming to preserve "bits" of the UK's EU membership and added: "We are leaving. We are coming out. We are not going to be a member of the EU any longer."
• Crude Oil prices have failed to close above $53.80/bbl at the open of the year, and given the pattern we have recently outlined, it is likely best to remain on watch for further short-term downside. The pattern is a rising wedge, which in the market context could either be an ending diagonal, which would favor an aggressive break below $50 followed by further downside or a leading diagonal.
However, a bullish resumption with a hold above $50, and an eventual close above $53.80 would likely favor a strong move higher through January, which would also add to the argument of higher inflation and a likely more aggressive Federal Reserve in the years to come.
Reference: Telegraph,Reuters
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