Daily Update
The start of trading on Monday is expected to be an exciting one for euro traders as the results of both the Italian referendum and the Austrian elections are out. Alexander Van der Bellen has won the Austrian Election, another surprise in 2016. However this is bit of a relief for EU leaders as Bellen’s counterpart, Hofer suggested that Austria could vote for a referendum similar to Brexit. Italy has voted yes for the referendum where Prime Minister Renzi was campaigning to reduce the number of senators and limit the senate’s power relative to the lower house of parliament. Before the referendum vote the opposite party, Five Star Movement (Anti Euro Zone members) has said if they win the referendum they would hold another referendum to decide whether Italy should leave the Eurozone. One of the most important events this week will be a speech by Federal Reserve of New York President William Dudley on the macroeconomic outlook. This speech will be followed by speeches from regional Fed Presidents Evans and Bullard. The three speeches, will present a golden opportunity for the Federal Reserve to prepare the markets prior to the policy announcement of the December 13-14th meeting. This will mean added focus on the three Fed speakers – particularly Dudley who is a permanent voting member as New York Fed chief.Today’s Focus
Next up will be Markit services PMI from Euro Zone. This is an important indicator of business conditions and the overall economic condition in Europe. In terms of data for the day, USA will release ISM Non-Manufacturing Index which shows the business conditions in the US non-manufacturing sector.
