Daily Briefing –Tuesday, December 5, 2017
Brexit continues to dominate European news, with the Irish border issue emerging as the major sticking point. This was reflected in the EURGBP pair which has risen dramatically in early morning trading. On the European front, financial data to be released today could cause volatility to the currency not forgetting of course that Germany has yet to form a government.
The US economy grew faster than expected in the third quarter of 2017, with GDP up to 3.3% rather than the expected 3.2%. New orders for factory goods did better than expected in October as did non-defense capital goods excluding aircraft which rose by 0.3 percent. In the meantime, the Federal Reserve is widely expected to raise interest rates later on this month. This will certainly add volatility to the greenback.
Japanese industrial output figures for October were lower than expected at 0.5 percent, but taken in conjunction with other economic data, it points to a positive shift in the direction of the economy. In Australia, as expected, the RBA left interest rates unchanged but the news failed to rally the AUD.
Oil prices have been falling, with the price of Brent falling by 0.2 percent to $62.35 and WTI by 0.1 percent to $57.43. The markets wait for US EIA crude inventories, to be released on Wednesday. This will surely cause volatility to oil prices.
|09:30 AM GMT||GBP: Markit Services PMI (Nov)|
|10:00 AM GMT||EUR: Retail Sales (Oct)|
|14:45 PM GMT||USD: Markit PMI Composite (Nov) & Markit Services PMI (Nov)|
|15:00 PM GMT||USD: ISM Non-Manufacturing PMI|