All Eyes on Draghi

Daily Update - 7th November 2017

Yesterday’s Market

• EUR Markit Service PMI , Markit PMI Composite & Producer Price Index
• USD Speeches by FED President Yellen & Fed Member William Dudley

Yesterday Explained

The greenback fell broadly in Monday's trading as investors remained cautious about U.S. tax reform plans and took profit after recent gains from the Fridays Unemployment Figures and Average Non-Farm Payroll figures.

The positive data from euro zone could not move the markets in Euros favor as overall positive dollar vibe was hurting any upward movement for the Euro. Pound was the best performer of the day with a growth of more than 4% with Theresa May’s speech where she mentioned that Brexit Panel will negotiate the best Trade Deals for UK and urged businesses have trust in its Governing body.

Fed Speeches did not make much impact in the market but Dollar later moved lower in New York afternoon as U.S. District judge declined to ease bail for Manafort and Gates.

Today’s Market

• AUD RBA Interest Rate Decision and RBA Rate Statement
• EUR ECB President Draghi’s Speech
• GBP NIESR GDP Estimate

Today’s Focus

Important day for Australian Dollar with the Rate decision and rate statement. The Reserve Bank of Australia recently made some dovish voices and opened the door to rate cut, but not in the near future. Since then, the inflation report came out below expectations and weighed heavily on the Aussie dollar. Will they send a more dovish message? Or are they pleased with the downfall of the Aussie Dollar?

ECB President Draghi is expected to a speech in Frankfurt. Draghi's opening remarks at the ECB Forum on Banking Supervision might infuse some volatility across the EUR and provide some short-term trading impetus. The day will end with UK releasing the GDP Estimate which would influence the UK monetary policy.