Daily Update - 31st January 2019
• EUR Harmonized Index • USD ADP Employment Change, Fed Interest Rate Decision, Fed Monetary Policy Statement, FOMC Press Conference The Euro traded once again within a well-limited range just above the 1.1400 figure for the first half of the day, showing little reaction to macroeconomic data, as German figures disappointed big, while the US ADP beat the market's estimates. The greenback collapsed afterward as the Central Bank dropped the language about further gradual hikes. Newly dovish US Central Bank which includes "altering the size and composition of its balance sheet," depending on future economic conditions. Indeed, dovish stance as the case for further rate hikes has now decreased according to Powell's words. Meanwhile, the US and China resumed high-level talks, in another attempt to solve their differences. Talks will continue this Thursday, and some official comments are expected then. The Sterling spent the day under pressure, with bulls disappointed after the UK Parliament voted to re-negotiate the Irish backstop within the Brexit deal. In the Brexit front, UK PM's May has now to convince EU leaders to return to the dealing table, something EU representatives refuse to do. In fact, EU's Chief Negotiator Junker has said that with the latest Common vote, the risk of the UK crashing out of the Union without a deal has now increased • EUR Consumer Price Index, Unemployment Rate, Gross Domestic Product • USD Jobless Claims German Retail Sales and EU GDP are scheduled also for Friday, with the EU Q4 GDP seen up 0.2%. The US calendar will remain scarce, with some minor employment-related figures scheduled, relevant ahead of the NFP report to be out Friday. The Gross Domestic Product released by the Eurostat is a measure of the total value of all goods and services produced by the Eurozone. The GDP is considered as a broad measure of the Eurozone economic activity and health. The Unemployment Rate released by the Eurostat is the number of unemployed workers divided by the total civilian labor force. It is a leading indicator for the European Economy. If the rate is up, it indicates a lack of expansion within the European lobar market. As a result, a rise leads to weaken the European economy. 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. Yesterday’s Market
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