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US government shutdown may be over, but for how long?

Defiant Donald Trump says he will not give up on his wall as the US government reopens after 35 days of closure.

Centtrip: Global slowdown fuels recession concerns

The US government has reopened without provisions for Donald Trump’s wall along the Mexican border.

The longest-in-history shutdown, which cost the US economy over $5 billion, ended last Friday, 25 January after Trump accepted a three-week restoration of government. But the US president threatened that if no agreement on the wall funding was reached by Friday, 15 February, he would shut the government again.

The Pound ended last week above 1.3200 against the Dollar and above 1.1590 against the Euro. Theresa May has privately ruled out a no-deal Brexit, according to media reports last week, but she is not taking it off the table with European negotiators.

Members of Parliament tomorrow, 29 January will vote on the UK prime minister’s plan B. A number of significant amendments, including on adding time limits on the Irish backstop, made over the past week could shape the future direction of Brexit. It is expected that the Democratic Unionist Party (DUP) will back the amendment, which could help avoid a hard Brexit.

With few data releases today, the focus will remain on Brexit. Meanwhile, market participants will wait for clues on the future path of interest rate policies as ECB member Ewald Nowotny, ECB chair Mario Draghi and Bank of England Governor Mark Carney will all speak today.

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