Brexit Optimism Boosts Euro, Sterling and US Dollar moves with Tariff Headlines

Daily Update - 19th September 2018

Yesterday’s Focus

• AUD Reserve Bank of Australia Meeting Minutes

Yesterday’s Explained

The financial world twisted once again around trade war headlines. The day started with US President Trump finally announcing that tariffs on Chinese goods worth $200B will come into effect next September 24, with China retaliating by announcing tariffs on $60B on US goods, also by filing a complaint to the World Trade Organization on the latest U.S. tariff measures.
Risk appetite played against the greenback during the first half of the day, as the latest round of tariffs applied to China were of 10%, below the worst-case scenario anticipated by market players. Furthermore, China's retaliatory measure seems not relevant, further boosting gains in equities ahead of the close. 
There were no new developments on Brexit, and the UK calendar didn't offer anything of relevance, 

Today’s Market

• JPY Bank of Japan Monetary Policy Statement, Bank of Japan Interest Rate Decision
• GBP Consumer Price Index, Producer Price Index
• EUR ECB President Draghi’s Speech

Today’s Focus

Today will be a busy day for GBP traders, as the UK will release multiple August inflation figures, including CPI, PPI, and the Retail Price index. The Core Consumer Price Index released by the National Statistics is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. "Core" excludes seasonally volatile products such as food and energy in order to capture an accurate calculation.

The European Central Bank's president Mario Draghi was born in 1947 in Rome, Italy. Graduated of the Massachusetts Institute of Technology (MIT), Draghi became the president of the European Central Bank in 2011. As part of his job in the Governing Council he gives press conferences in the back of how the ECB observes the current European economy.