mask Stronger Euro & Hard Brexit for UK?

10/ 01/ 2017

Stronger Euro & Hard Brexit for UK?

Daily Update

Yesterdays Market

  • EUR Germany Trade Balance & Euro Sentix Confidence
  • USD Labor Market Condition Index

In terms of EUR, it gained some upside momentum yesterday after positive reports from Euro Sentix Confidence was boosted. Trade Balance for Germany for the same month was more encouraging, as the seasonally adjusted trade surplus widened to €21.7B, better than the €20.8B expected, with monthly imports up by 3.5% and exports by 3.9%.

In the US, the FED´s Labor Market Conditions Index declined by 0.3 in December, against a previous gain of 1.5, usually seen as a sign of slowing in the sector, But Euro still remains unstable as per analysts since Chicago Federal Reserve President Charles Evans stated on Friday that Fed could raise interest rates three times this year. It’s also anticipated Fed could step up the pace of its rate hikes if the incoming Trump administration unleashed fiscal stimulus.

Detailed insight into GBP crash yesterday

We all saw the impact Hourly Earnings of US had on all of its rival currencies. But the main reason why GBP plummeted yesterday was, Theresa May’s statement over the weekend on Brexit.

She quoted "not just a desire but strategic thrust to abandon the single market in exchange for regaining control over immigration" and not being subject to European court of justice has caused uncertainty among Investor confidence and it has cost Sterling more than one percent of loss yesterday.

Today’s Market

  • CNY Consumer Price Index
  • CHF Unemployment Rate

Today’s Focus

Another light day with not many major data to be released worldwide. Morning we will see reports released from China on their Consumer Price Index for 2016 which is a key indicator to measure the inflation and changes in purchasing trends.  This will be followed by reports from Swiss on Unemployment rate which will give a significant indication of the Swiss Economic growth and the level of expansion.