Dollar climbs on U.S. Oil Stockpile use after Saudi Attacks

Daily Update – 17th September 2019

Yesterday Explained

• CNY Retail Sales
• CNY Industrial Production

The primary catalyst for the negative sentiment was a drone attack on Saudi Arabia oil facilities, affecting up to 50% of the country’s production. Another headline that weighed on the shared currency came from the World Trade Organization, as the organization ruled in favor of the US in the case of illegal subsidies granted to European aerospace Airbus. Fears are that the US will now impose punitive tariffs to EU products for as much as $21billion.

In the Brexit front, UK PM Boris Johnson met with his Luxembourg counterpart, Xavier Bettel, later skipping the press conference. Better was left alone, and criticized Johnson for failing to clarify what he wanted from Brexit. He then reiterated that the European Union won't give the UK another Brexit extension "just for the sake of another extension," and that the Withdrawal deal signed by former PM May is so far the only solution possible.

• EUR ZEW Survey Economic Sentiment
• USD Industrial Production

 

Today’s Focus

This Tuesday, Germany will publish the September ZEW survey on Economic Sentiment for the country and the EU, both seen improving from August readings, although still within negative levels. 

There are no macroeconomic events scheduled in the UK this Tuesday.