Global macro overview for 02/07/2018

According to a survey conducted every quarter within the CFO of the companies, a record 75% of large British companies are pessimistic regarding the Brexit issue. In April it was 68%. The companies expect to reduce investment expenditures and lower sales revenues.

The Deloitte survey shows that currently many companies use a defensive financial strategy, their percentage is the highest since 2012. Corporations are unconvinced about the exact schedule of negotiations and the final agreement on the exit from the EU. The optimism resulting from the alleged achievement of a favorable outcome of negotiations was only temporary, there is no trace of it. Only 17% of large companies expect to achieve higher revenues in the next 12 months.

The situation is not improved by the attitude of the British government. Oliver Robbins - the main negotiator on the Brexit case - told the ministers that there is no chance of achieving a favorable outcome of the negotiations on trade agreements with the European Union. The EU did not have the slightest desire to soften its tough approach to negotiations.

Let's now take a look at the GBP/USD technical picture at the H4 time frame. The pair at the beginning of the week is growing despite negative information, but the technical resistance zone between the levels of 1.3191 - 1.3217 was too strong for bulls to break through. The momentum, however, remains bullish and the market conditions are indicating a possibility of another rally towards the resistance. The nearest technical support is seen at the level of 1.3100.

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