Dollar stays afloat on Fed Expectations

Daily Update - 28th November 2018

Yesterday’s Market

• NZD Trade Balance
• USD Housing Price Index & FOMC Bostic Speech

Yesterday’s explained

Focus of yesterday was the rate of home price increases across the U.S slowed for the second month in a row. Followed by Geo-Political tensions surmounting around the G-20 Summit which is coming up in Buenos Aires next week will be a Key Cue for all investors globally on the current Economic Projections of Stronger Economies.

Analysts believe that the hot topic of the event could be U.S –China Trade War to conclude or could kick off another blow to Chinese Import Tariffs from U.S.  Sterling slumped against the dollar and the euro on Tuesday as doubts grew about whether British Prime Minister Theresa May can get a Brexit agreement through a divided parliament.

 

Today’s Market

• GBP Financial Stability Report
• USD GDP & Core Personal Consumption Expenditure.
• Fed Chairperson Jerome Powell’s speech

Today’s explained

Two key reports that give insight into the UK economy's ability to survive a hard Brexit are due today, and will be drawing attention. On the UK's economic docket for Wednesday is the results of the Bank of England's (BoE) Bank Stress Tests, a key test of the UK's ability to survive a messy Brexit scenario, while the BoE will also be dropping their Financial Stability Report, expected sometime in the early hours.

The Gross Domestic Product Annualized released by the US Bureau of Economic Analysis shows the monetary value of all the goods, services and structures produced within a country in a given period of time. GDP Annualized is a gross measure of market activity because it indicates the pace at which a country's economy is growing or decreasing. Core Personal Consumption Expenditure is an average of the amount of money the consumers spend in a month on durable goods, consumer products, and services. It is considered as an important indicator of inflation.

Speech from the US Federal Reserve's Chairman Jerome Powell on Wednesday, while Thursday brings the latest Meeting Minutes from the FOMC, and both events could flash potential warning signs of the world's largest central bank getting ready to begin considering slowing down their path of rate hikes going forward, a move that would expose the US Dollar to further downside.