Daily Update - 20th September 2017
Both economic surveys suggested that German economy is going strong at the moment ahead of the German Election which is taking place on the weekend. This meant that EUR/USD crossed 1.2010 levels for the second time of the year. Both Housing Starts and Building Permits from US had better than expected figures, it did not support dollar to make any advances against the already strong Euro. News coming in from New York, President Donald Trump delivered a stern warning to North Korea in his first speech to the United Nations general assembly – telling Kim Jong-un that “Rocket Man is on a suicide mission” and threatening the “total destruction” of his country should he attack the US. This gave further boost to US stocks but did not move the FX market much in the favor of US Dollar. The biggest day of the week where FED decision on interest rate and live press conference will be watched closely by the markets. First up we will see PPI Figures from Germany which measures the average changes in prices in the German primary markets. We will then see Retail Sales report from UK which measures the total receipts of retail stores in UK. Then comes the all-important FED Rate decision which will be followed by a live press conference. The Fed is expected to announce the beginning of Quantitative Tightening or the beginning of reducing its 4.5 trillion-dollar balance sheet. The focus will be on the timing of the next interest rate hike. Will it happen in December, completing three hikes in 2017? Or has recently weak inflation undermined the chances? This is the big question for skeptical markets and the US dollar.Yesterday’s Market
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