Daily Update - 21st Feb 2017
Imports reports came out positive for Japan, Negative figures in the Exports report hurt the overall Trade Balance figures. Germany reported positive figures on Producer Price Index while Consumer confidence from the whole Euro zone reported a negative figure. Despite US financial markets being closed in lieu of Presidents Day Holiday US Dollar gained positive momentum against most of the major currencies due to broad based US dollar strength, in response to strengthening US treasury yields. Experts say USD may consolidate in the short-term due to two main reasons. Two Reasons for Positive US Dollar: 1. Increasing fiscal spending: Trump advocates increasing fiscal spending and infrastructure and tax cuts, which may underpin US and global economy. It may make the Fed tighten monetary policy more quickly, which may support USD. 2. Fund inflows into the US: US corporations have around $1.2 trillion overseas. If Trump cuts corporate tax, fund inflows back into the US may underpin USD. The Reserve Bank of Australia is to publish the minutes of its latest monetary policy meeting, giving investors insight into how officials view the economy and their policy options. The euro zone is to release survey data on private sector business activity. This will be followed by Public sector net borrowing report from UK. The Focus of the day will be on Bank Of England, where they will release Inflation Report Hearings which examines the expenditure, administration and policy of HM Treasury, HM Revenue & Customs, and associated public bodies, including the Bank of England and the Financial Services Authority. This will be followed by BOE Governor Mark Carney’s testimony before the Treasury Select Committee later today on Feb inflation report. The Day will end with US releasing Markit PMI Composite, Markit Services and Markit Manufacturing data.Yesterday’s Market
Yesterday Explained
Today’s Market
Today’s Focus
