Markets on Wait and Watch Mode ahead of FED Event

Daily Update - 19th September 2017

Yesterday’s Market

•             EUR Consumer Price Index

•             USD NAHB Housing Market Index

Yesterday’s Focus

Dollar had a fairly positive day by an advance in US Treasury yields, on hopes the Fed will give some clues on how and when it will begin unwinding its balance sheet at tomorrows FED event. Furthermore, news coming in from US was that the US Senate approved a defense bill of 700 Billion US $ for Trump administration which saw further support for the dollar.

In terms of economic data CPI figures for Euro zone was better than expected. Which supported Euro to hold on to its 1.95 – 1.96 levels against the US Dollar. US NAHB housing price index fell short of expectations which meant that it did not give any support to dollar advance. On sidelines, BOE Governor Carney said that any future rate hike tightening must be gradual and limited. This less hawkish tone did little support to the Pound as it lost some of its last week’s gains.

 

Today’s Market

•             EUR ZEW Survey - Economic Sentiment & Current Situation

•             USD Housing Starts and Building Permits

Today’s Focus

We await another calm day in the markets with only mid-tier macroeconomic data coming from Germany and USA. First up we will see the results of the two economic surveys from Germany, which shows the investor sentiment in the region.

For the second day in a row we get see more housing data from USA with the release of Housing Starts and Building Permits. Housing Starts is an indicator that tracks how many new single-family homes or buildings were constructed while Building Permits shows the number of permits for new construction projects.