mask FED Remains in the Spotlight with Brexit in Focus

06/ 02/ 2019

FED Remains in the Spotlight with Brexit in Focus

Daily Update - 6th February 2019

Yesterday’s Market

  • AUD – RBA Interest rate decision
  • USD – Markit service PMI & PMI Composite

Yesterday’s explained

Yesterday, the RBA kept its benchmark interest rate on hold, while offering slight downgrade of its outlook for the economy. Lowe is likely to address the increased downside risks to both the global and domestic economy. He is also expected to be less confident about the economy than he was just a few months ago. Both issues are likely to produce a bearish result.

Later the day US Markit Services figure boosted the Dollar & kick started a stronger day against all rivals in the global markets.

Today’s Market

  • USD - Jerome Powell speaks
  • EUR – German Factory Orders

Today’s Explained

Once again, the focus of this week will be around Fed Chairperson Jerome Powell’s speech since his last key note speech caused significant spike on Dollar against Rivals. According to experts Fed could go for Interest rate hikes one to two more times this year if the Inflation gathers steam. Today will be a highlight of German Factory orders which could indicate their current Manufacturing sector outlook which is a major contributor to EUR GDP.