Daily Update
President Trump’s comments on withdrawing from Trans pacific partnership (TPP) and imposing a 35% border tax on companies who want to have their production factories under TPP caused broad based Dollar sell off in Asian markets which favored rival currencies such as EUR and GBP, where EUR/AED pair moved up by 1% and GBP/AED pair by 1.5%. Market services and manufacturing data from Europe came out with mixed results, which provided further support to EUR. This was followed by Public sector net borrowing data from UK, which was better than expected. UK was once again in spotlight as Supreme Court dismissed the government's appeal in a landmark case about Brexit, meaning Parliament will be required to give its approval before official talks on leaving the EU can begin. This ruling is significant, although it wasn’t unexpected is a huge setback for UK Prime Minister Theresa May. This resulted in GBP losing its gains made in Asian markets where it fell to a low of GBP/AED 4.57 from 4.61. The day ended with Markit Manufacturing PMI from USA which captured the business condition in USA which came out positive helped US Dollar to gain some positive growth. The day will start with trade balance reports from Japan which is measure of balance amount between import and export. A positive value shows a trade surplus while a negative value shows a trade deficit. This will be followed by UBS Consumption Indicator which is a leading indicator of private consumption trends, which is the most important component of Swiss GDP. Later on Germany will release IFO Business Climate, Current Assessment, Expectations reports which are indicators of current conditions and business expectations in Germany. Day will end with Housing Price Index from USA which provides an estimated value of housing market conditions. It is an important indicator as the housing market is considered as a sensitive factor to the US economy.Yesterday’s Market
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