Central Bankers in Focus, with the Pound in the Spotlight

Daily Update - 11th July 2017

Yesterday’s Report

• EU Germany Trade Balance
• US Labor Market Conditions Index, Consumer Credit Change

Yesterday’s Explained

Yesterday’s data from Germany, released its May trade balance figures at the beginning of the day, with the surplus matching market's expectations of €20.3B, whilst exports and imports rose beyond expected, another sign of healthy economic growth in the region that influences the volatility in EUR. On the other hand, US job growth surged more than expected in June and employers increased hours for workers, signs of labor market strength that could keep the Fed on course for a third interest rate hike this year despite sluggish wage gains.

Today’s Focus

• UK Prime Minister Theresa May Speech
• US FOMC Member Brainard, FOMC Kashkari Speech

Today’s Market

Today’s focus will be speeches, firstly, coming from UK as Theresa May as expected to deliver a speech, focusing on the issues of the country's foreign policy that will influence the major currencies. Furthermore, there were 2 FOMC members that will be speaking to FOMC Committee, FOMC Member Kashkari and Fed Governor Lael Brainard who is the most vocally dovish member of the rate-setting FOMC committee, will offer her thoughts. If even she supports the case for another rate hike this year, skeptical financial markets may be moved to shift baseline expectati