In This Article:
Earlier in the Day:
It was a quiet day on the Asian economic calendar in the earlier hours of this morning.
There were no material stats to provide the majors with direction early on.
The lack of stats left the markets to respond to the overnight FOMC economic projections while looking ahead to the UK General Election and the ECB monetary policy decision.
On the geopolitical front, the markets are still waiting for some clarity from the U.S and Chinese governments on where things stand. While there has been the talk of the 15th December tariffs being delayed, there has been little else from either side.
It may be a case of no news is good news if both sides are close to thrashing out a phase 1 agreement…
Later today, there’s also the UK General Election to consider, the outcome of which will influence risk sentiment.
Across the Majors
At the time of writing, the Kiwi Dollar was flat at $0.6586, with the Aussie Dollar up by 0.01% to $0.6877. The Japanese Yen was up by 0.06% to ¥108.49 against the U.S Dollar, with
The Day Ahead:
For the EUR
It’s a relatively busy day ahead on the economic calendar. Economic data due out of the Eurozone includes October industrial production figures.
We can expect any softness in the industrial production figures to weigh on the EUR. Finalized November inflation figures out of Germany and France, however, will likely have a muted impact on the EUR.
Economic data may have to play 2nd fiddle, however. ECB President Lagarde’s first ECB press conference will garner plenty of attention and will lay the foundations of what to expect near-term.
The Eurozone’s economic powerhouse, Germany, continues to struggle, leaving the economy reliant upon services and consumer spending…
Lagarde will likely look for a shift in focus to offset the negative impact of the contracting manufacturing sector.
Fiscal support will be the likely theme, one that Draghi failed to lure from key member states.
On the geopolitical risk front, chatter on trade and UK politics will also be in focus.
At the time of writing, the EUR was up by 0.06% to $1.1137.
For the Pound
It’s not a big day for the Pound, it’s a massive day. It’s Election Day and the UK may finally be able to put the epic Brexit saga behind it.
Boris Johnson is ready to take Britain out of the EU with the deal negotiated just weeks ago…
Whether there are any jitters ahead of the first set of results remains to be seen, but some caution is likely to set in.
There’s a long way down for the Pound should Johnson come undone as his predecessors have done of late.