mask Greenback showing signs of strength

28/ 09/ 2017

Greenback showing signs of strength

Daily Update - 28th September 2017

Yesterday’s Market

  • USD Durable Goods Orders, Pending Home Sales & 2 FED Speeches
  • USD Trump Tax Reform

Yesterday Explained

The day started positively for the dollar on the back of hawkish comments from Yellen on Tuesday, where she mentioned that the pace of rate increases might potentially be faster than anticipated. And inflation target will not hurt them in the shorter term for the time being.

US data also supported the Greenback with US durable goods orders for August were on the stronger side of expectations bolstering expectations of an interest rate hike from the Fed in December. Furthermore, positive impetus was given to Dollar with Trump’s Tax Reforms which turned the market sentiment in favor of the dollar.

 

Today’s Market

  • EUR Gfk Consumer Confidence Survey & Industrial Confidence
  • USD GDP, Core Personal Consumption Expenditures & Initial Jobless Claims

Today’s Focus

Euro will be starting the day on backfoot with Dollar dominating the markets with the release of Trumps Tax plan. Hence today is an Important day for Euro in terms of data. Firstly, from Germany, Gfk Consumer Confidence Survey which is a leading index that measures the level of consumer confidence in economic activity. This will be followed by Industrial Confidence, which measures the level of industrial executive’s confidence in economic activity.

Later in the day, from US, The Gross Domestic Product Annualized will be released which shows the monetary value of all the goods, services and structures produced within a country in a given period of time. This is key figure which will give the FEDs more thinking space on increasing the interest rates for Dec.

Then comes Core Personal Consumption Expenditures, which shows an average of the amount of money the consumers spend in a month on durable goods, consumer products, and services. It is considered as an important indicator of inflation.

This will be followed by, The Initial Jobless Claims which is a measure of the number of people filing first-time claims for state unemployment insurance. The day will end with two fed speeches from Fed Presidents George and Stanley Fischer.