4th December 2018
The common currency was undermined by persistent political turmoil in Europe, as Italy can't come with a budget that satisfies the EU. Italian PM Conte and EU's Commission leader, Juncker, met in the sidelines of the event with Conte saying that they are studying different options for a possible deal. Part of the EUR's weakness is due to macroeconomic data indicating an economic slowdown. The greenback, which suffered from a surprise statement from the Fed's head, Powell over rates being close to "neutral" recovered ground as the FOMC Minutes released afterward showed no changes to the current path. A more positive news coming from the G-20 is that China and the US agreed a 90 days' truce. Both countries agreed not to impose additional tariffs on each other for a period, which will be dedicated to talks, aiming for a solution. On Brexit, Britons keep discussing whether or not to approve the deal and possible alternatives to it, EU authorities repeat that the deal signed November is the only possible deal. Chances that the UK Parliament will vote May's plan are low. Over the weekend, news coming from the kingdom showed that Labor MPs will call a motion of no-confidence if PM May can't get to pass the deal through Commons The macroeconomic calendar will be light, with nothing that can rock the boat, as the EU will release the October PPI while the US will offer the ISM Business Conditions Index, and the IBD/TIPP optimism index, while more Fed members will be on the wires. RBA Interest Rate Decision is announced by the Reserve Bank of Australia. If the RBA is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the AUD. Likewise, if the RBA has a dovish view on the Australian economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.Yesterday’s Markets
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