The U.S. dollar had its strongest week against major currency pairs in twelve months. Even as the United States is suffering a bout of political uncertainty, the dollar became a safe haven as stocks and bonds saw massive moves this week.
It was another mixed picture overnight, as capital markets digested the weakening dollar and a protectionist push from the U.S. Meanwhile, the market looks for clues on policy-makers’ appetite for rolling back stimulus and thoughts on strengthening EUR currency.
Despite markets being closed for Martin Luther King Jr.'s holiday, the U.S. dollar is in trouble and headed for the fourth day of losses against G10 currency pairs. Here are the 5 things you need to know.
The collapse of the German coalition talks over the weekend suggests that Germany is no longer the role model of ‘political’ stability. Europe’s strongest economy has the possibility of three options ahead: a minority government, a continuation of the current grand coalition, or new elections.
German elections appear to be more predictable with Angela Merkel’s party likely to prevail, but with the rise of the far-right and the need for a partner for a grand coalition, the number of seats of other parties will be of utmost importance.
This is a busy week both on the Central Bank and parliamentary election front. Among the G7, the Bank of Japan and the Fed hold policy meetings this week, as does Norway’s Norges Bank. For some of these meetings, expectations are uncertain.
The US dollar managed to end the week on a positive note despite North Korea’s missile launch, low retail sales, and flat US inflation data. In your week ahead we cover probabilities of a US rate hike, inflation in Japan, and tax reform.
Debate unfolds as to what Bannon’s removal means for the Trump administration's economic agenda. See how his departure is affecting the market, especially in regard to the Jackson Hole meeting this week.