Dollar's on the Move as Trade Talks are back in Focus

Daily Update - 28th August 2019

Yesterday’s Market

• Germany Gross Domestic Product
• US Consumer Confidence

Yesterday’s Explained

The Gross Domestic Product released remained unchanged of total value of all goods and services produced by Germany. The Consumer Confidence released did not support the Dollar much compared to what was expected and it remained pushing the Dollar on the edge against the board.

 

Today’s Market

• Germany GFK Consumer Confidence Survey, 10 Year Bond Auction

Today’s Explained

For EUR, it’s a relatively quiet day ahead on the economic calendar. German’s GfK consumer climate figures for September are due out ahead of the European open. With the ECB reliant upon consumer spending to support the economy, a deterioration in consumer confidence would weigh on the EUR. Outside of the stats, geopolitics will continue to provide direction through the day coupled with sentiment towards the economic outlook. For the pound, It’s another quiet day ahead on the data front, the UK Parliament’s summer recess is coming to a rapid end and we can expect the chatter to build on Brexit and talk of a vote of no confidence to influence on the day. Any news of Corbyn agreeing to step back from a plan to lead a caretaker government would provide support to the Pound. Borish Johnson may consider a surprise snap election and even suspension of Parliament to deliver Brexit. For the Dollar, the markets will continue to focus on trade and the economic outlook. While trade talks are now set to resume next month, the ongoing damage to the U.S and global economies need to be considered.