mask Political Chaos Taking Center Stage

26/ 09/ 2017

Political Chaos Taking Center Stage

Daily Update - 26th September 2017

Yesterday’s Market

  • EUR German Election Results
  • EUR IFO - Business Climate, Mario Draghi Speech
  • USD Dallas Fed Manufacturing Business Index

Yesterday’s Focus

Politics took center stage as markets opened for trading on Monday. Early morning markets were faced with the shocking news of Merkel failing to cover majority votes as German elections revealed a sharp rise in support for the far-right AfD party. Merkel's weak victory and heightened tensions in the Korean Peninsula did not help the matters either. Euro had to shed its gains further more as all 3 German Survey reports came out negative.  

Pound also suffered a weak start to the week undermined by broad dollar's strength. Further negativity impacted the pound with the News coming in from UK, that Chancellor Philip Hammond refused to back Theresa May as Conservative leader into the next election and news that said Moody's downgraded UK's debt rating to Aa2 from Aa1 on Brexit uncertainties.

Meanwhile Dollar had a decent day until, North Korea called Trump's recent comments at UN Conference is a "declaration of war" and vowed to respond as the rhetoric ramps up. The US replied that Trump's comments were not a declaration of war but a warning only. Dallas FED manufacturing figures came out positive which shows that Manufacturing outlook for Dallas looks positive.
 

Today’s Market

•          JPY BoJ Monetary Policy Meeting Minutes

•          GBP Inflation Report Hearings

•          USD New Home Sales Change

Today’s Focus

Early hours in the UAE, BoJ Monetary Policy Meeting Minutes will be released. The Bank of Japan publishes a study of economic movements in Japan after the actual meeting. These meetings are held to review economic developments inside and outside of Japan and indicate a sign of new fiscal policy. Any changes in this report tend to affect the JPY volatility.

Later in the day, UK will release its Inflation Report Hearings. In this report, The Treasury Committee is appointed by the House of Commons is to examine the expenditure, administration and policy of HM Treasury, HM Revenue & Customs, and associated public bodies.

Later in the day, from US, New Home Sales Change indicates how House buyers spend money on furnishing and financing their homes so as a result the demand for goods, services and the employees is stimulated