mask Trump Creates Further Chaos for Dollar

12/ 04/ 2018

Trump Creates Further Chaos for Dollar

Daily Update - 12th April 2018

Yesterday’s Market

  • AUD RBA Governor Philip Lowe Speech
  • EUR Non-Monetary Policy ECB meeting & ECB President Draghi’s Speech
  • GBP Industrial Production & Manufacturing Production
  • USD CPI, CPI ex Food & Energy & FED Meeting Minutes

Yesterday Explained

The day started off quite slowly with Philip Lowe reassuring investors that Australian economy will do good in the coming months. Draghi in his speech was confident that inflation and wages will rise as the economy improves. He said that he feels there will be a big impact from U.S.-Chinese trade tensions but the effect on confidence could be important. Hence Thursdays Euro zone industrial data could be vital for Euro to pick up pace.

Negative industrial and manufacturing figures from UK, meant that activities in both sectors has slowed down prompting investors to sell GBP. FED Minutes had a hawkish tone as FED sees significant fiscal policy growth boost over the next few years while most FED officials see gradual rate hikes as appropriate.

US Inflation came out as expected but politics stood in the way of the dollar as Trumps warning to Syria over Twitter yesterday, caused panic among investors and dollar selling was inevitable as a result.

Today’s Market

  • AUD Home Loans
  • EUR Industrial Production & ECB Monetary Policy Meeting Accounts
  • USD Initial Jobless Claims & Continuing Jobless Claims

Today’s Focus

Australia will release Home Loans figures and this is expected to be positive which should push the Aussie dollar up. Then it will be Industrial Production from Euro zone which shows the volume of production of Industries such as factories and manufacturing.

This will be followed by Meeting minutes from the ECB Non-monetary policy meeting held in march where forecasts were hardly changed and Draghi made an effort to downplay the slightly more hawkish stance in the statement. The day will come to an end with the release of Initial Jobless Claims and Continuing Jobless Claims which are related to unemployment in US.