Mixed Dollar results, Markets anticipate Bullish Comments from Powell

Daily Market Update - 6th Dec 2018

Yesterday’s Focus

• EUR Markit Services PMI

Yesterday’s explained

The EUR finished Wednesday little changed for a third consecutive day, as market players are still trying to define where to go next after last week Fed-related headlines.

The Euro, on the other hand, is suffering from its self-woes, undermined by the Italian budget issues, signs of slowing growth, and a central bank that does not have much room to move.

European Central Bank policymakers are debating ways to wean the euro zone off years of easy money, floating ideas such as a new kind of multi-year loans and staggered increases in interest rates

Brexit also, as everyone discusses the effect it may have on the UK, for sure the one to suffer the most, forgetting that it won't be easy either for the EU to face the first crack on its fragile structure.

The GBP recovered some ground after hitting low on Tuesday, Market players are turning more cautious ahead of the Parliamentary Brexit vote that will take place next Tuesday.

Northern Irish party propping up British Prime Minister Theresa May's government will vote against her Brexit divorce deal in a key vote in parliament next week, according to one its lawmakers.

Business activity and incoming new work weakening in UK. There are no relevant data scheduled in the UK for this Thursday.

The greenback ended mixed against majority of its peers on Wednesday as U.S. stock markets were closed for a National Day of mourning for George H.W. Bush

Today’s Focus

• USD Fed Powell Speech
• USD Markit Service PMI
• USD Jobless Claims Reports

Today’s explained

This Thursday, the focus will be on US data, particularly related to employment ahead of Friday's NFP report. There are no relevant data scheduled in the UK for this Thursday.

The Services Purchasing Managers Index (PMI) released by Markit Economics captures business conditions in the services sector. As the services sector dominates a large part of total GDP, the services PMI is an important indicator of the overall economic condition in US.

The Initial Jobless Claims released by the US Department of Labor is a measure of the number of people filing first-time claims for state unemployment insurance. In other words, it provides a measure of strength in the labor market. A larger than expected number indicates weakness in this market which influences the strength and direction of the US economy