mask Will the Dollar Rise Alongside Rising Tensions with North Korea

09/ 08/ 2017

Will the Dollar Rise Alongside Rising Tensions with North Korea

Daily Update - 9th August 2017

Yesterday’s Focus

  • EUR Trade Balance
  • US JOLTS Job Opening

Yesterday’s Explained

German exports have posted their fastest fall in over two years and imports were down 4.5% on the month to July. That is the largest fall since January 2009. These stats have heaped criticism on Chancellor Merkel for not promoting business investment as she prepares to defend her position in the upcoming elections. On the other hand, the dollar shook off early weakness to rise to more than a one-week high on Tuesday, after data showing U.S. job openings surging to a record in June reinforced Friday's robust payrolls data.

The JOLTs job openings report for June jumped to 6.163 million, far better than around 5.7 million expected. While this is a lagging report (the NFP was for July), the Fed focuses on this report and sees it as a wider measure of employment.

This is not only above the round 6 million level but also a new record high. The level of quits, seen as a sign of confidence

Today’s Market

  • GBP Inflation Report Hearings
  • US Unit Labor Costs, Nonfarm Productivity
  • NZD Interest Rate Decision, Monetary Policy Statement & Press Conference

Today’s Focus

Early in the day, The Treasury Committee will report about e the expenditure, administration and policy of HM Treasury, HM Revenue & Customs, and associated public bodies, including the Bank of England and the Financial Services Authority followed by US Unit Labor Costs Higher costs of labor could trigger an earlier rate hike. Nonfarm Productivity that will indicate the overall business health in the US, which has an influence on GDP. This quarterly measure serves as another indicator for wages or inflation.   Lastly, the Reserve Bank of New Zealand has maintained the interest rate at 1.75% since the cut last November. The recent disappointing jobs report means no imminent rate hike is on the cards. The RBNZ and Governor Graeme Wheeler will provide jobs report justification.