Daily Update - 25th May 2017
The FED Reserve minutes failed to inspire additional gains in the USD as a few policy makers were worried that progression of inflation has not been in levels as expected. The investors were expecting from the USD was sold because they didn’t like the comments in relation to inflation during the FOMC minutes which is the same situation the ECB is facing at present The BOC has noticed significant improvement in the span of a month’s time which reflects on the recent reports that shows the economy improve. The main event that will drive the CAD will be the OPEC meeting. A no extension scenario could be very negative for the CAD, 6 month mildly negative & anything above a 9 month extension can sharply increase the trading levels it is trading at currently The EUR failed to recapture the market even after positive confidence report from Germany & optimistic comments by ECB president Mario Draghi mentioned that the macro economy is improving & that QE could came more harm than just a rate decline. Even with economy on its way to solid recovery there will be no deviations to current policies because of declining inflation pressures. Since the EUR/AED is up by 6% since April, the ECB isn’t in a hurry to talk about QE because the strong currency puts greater pressures on inflation Today we will have a single focal point as the OPEC Meeting kicks off. It is anticipated that the Oil supply cut could very well take place as the two major players in the industry Russia and Saudi Arabia are pro supply cut which could have dramatic affects to Commodity currencies such as Cad and AUD, However failing to meet the 9 month extension could have negative impact. From here on we will be having mid-tier reports such as the Gross Domestic Product from UK which measures the total value of goods and services in the UK, followed by the Job loss Claims reports coming in from US which counts the number of individuals that file for the first time for state unemployment Insurance. Yesterday’s Focus:
Today’s Focus:
