Politics to drive the market

Daily Update - 9th November 2017

Yesterday’s Market

•             EUR Non-Monetary Policy ECB Meeting

Yesterday Explained

The ECB Meeting did not make any room for market movement as the meetings minutes will only come out next week. However Political developments took center stage as the latest talk indicates that Senate GOP (Republicans) are set to unveil a tax bill that diverges from the previously proposed house plan. Under the tax plan being negotiated, there is no inclusion of a 20% excise tax on imports by multinational companies. This could may have a negative impact on the Dollar in the long run.

The British Pound was under selling pressure on Wednesday as the political disarray in the UK continues. International Development Secretary Priti Patel was forced to resign over unofficial meetings with Israelis. The news adds to the political crisis unraveled over sexual misconducts by several British politicians; it comes to show further signs of strain in the UK government at a critical time when they must project a sense of unity amid Brexit talks.

Today’s Market

•             GBP RICS Housing Price Balance                       

•             EUR Trade Balance, Current Account, Imports & Exports

•             USD Initial Jobless Claims & Continuing Jobless Claims

Today’s Focus

Thursday is the busiest day of the week with Data coming out from UK, Euro zone and USA. Early up UK will release Housing Price Index which presents housing costs in the UK. It shows the strength of the UK housing market. Next up we have Germany releasing their Imports and Exports reports along with Trade Balance. These data will be followed by Current Account Report which is a net flow of current transactions, including goods, services, and interest payments into and out of Germany.

The focus then shifts to US with the jobs reports. First up will be Continuing Jobless Claims which measure the number of individuals who are unemployed and are currently receiving unemployment benefits. In terms of Economic data, the day will end with Initial Jobless Claims which is a measure of the number of people filing first-time claims for state unemployment insurance.

However, the key event which will be watched by markets will be the US Tax Bill text which will be released at a tentative time.