mask What's next for EUR?

24/ 10/ 2017

What's next for EUR?

Daily Update - 24th October 2017

Yesterday’s Focus

  • US Chicago Fed National Activity Index

Yesterday’s Explained

Dollar gained more strength on the back of positive news from last week with U.S. Senate passing the Budget resolution for Trumps Government. With this news Treasury yields rose on Friday, with two-year yields reaching a near nine-year high. This move also raised expectations the

Republican-controlled Congress and U.S. President Donald Trump would be able to enact their tax-cut package as promised during his election campaign.

Waiting for the key events, traders seem to be spending their time on speculating who will US President Donald Trump nominate for the post of Fed chair. Current Fed chair Janet Yellen is still in the race and would provide status quo stability. But it's clear that Yellen is never a favorite of Trump. Fed Governor Jerome Powell is seen as the favorite by bookies, as he has knowledge of Fed and monetary policy. Stanford University economists John Taylor is so far, the dark horse. Former Fed governor Kevin Warsh and White House economic advisor Gary Cohn are out of the race already. Meanwhile, Euro firmed ahead of the European Central Bank's meeting.

Today’s Focus

  • EUR Markit PMI Composite, Markit Services PMI, Markit Manufacturing PMI
  • USD Markit Manufacturing PMI, Markit Services PMI 

Today’s Market

On Tuesday data are due to be released coming from Europe and US. Start with Markit PMI Composite are based on a large number of business executives in private sector manufacturing and services companies. Data is usually released on the third working day of each month. Each response is weighted according to the size of the company and its contribution to total manufacturing or services output accounted for by the sub-sector to which that company belongs. Replies from larger companies have a greater impact on the final index numbers than those from small companies.