Daily Update - 28th March 2017
Yesterday’s Market German IFO confidence data reports released yesterday saw better-than-expected which improved the outlook of German economy and the euro zone further rallying Euro Rate at the time report was released. Dollar fell to its lowest since November against basket of currencies including EUR, JPY and CHF. And GBP hit a 08-week high, as investors lost confidence in president Trump’s failure to pass major health care bill. This has raised doubts whether he will be able to see through tax reform and proposed spikes in spending. And further Chicago Fed president Evans said in his speech yesterday that failure of GOP's health-care bill adds to uncertainties' in US. However, during the North American Session USD recovered bit from its earlier lower levels but overall remains subdued and falling further. Today’s Market Today’s Focus It is the general understanding that when FED president Janet Yellen gives a speech there is high volatility in the market. In last speech she gave, she did not address monetary policy or any economic outlook. However, if she does address these matters today there is a high chance of volatility in Currencies. If she makes any positive comments on the outlook of the US economy there is a high chance of USD appreciating, Vise-Versa. Her speech is schedule to start at 08.50pm UAE time.
