Uncertainties will weigh near term, but an orderly ‘deal’ exit from the EU leaves scope for a visible rebound of sterling in the first half of the year. Finally, further escalation in the trade war will weigh on the Chinese currency.
Turning now to the fixed income markets, in 2018 the US government bond yields moved higher for much of the year, while the other global bond yields remained low. The 2-year Treasuries offered around 90% of the 10-year yield with only one-fifth of the duration risk.