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.
Last week's geopolitical worries sent investors scampering for safe havens. Now, the dollar gains seem capped by the tensions on the Korean peninsula and doubts that the Fed will hike interest rates again this year.
It’s a nervy time for investors. There are many factors that should be supporting riskier assets – improving economic outlooks in the U.S, Europe and China, including raising short term interest rates and continued bond buying.
With Trump in the White House, the traditional US-Russia relationship is under the spotlight. Here’s how a new found-relationship between the two powerhouses will affect companies exposed to the dollar/ruble spread.
China and America currently stand face-to-face; two economic gunslingers hands hovering over their triggers, waiting for the other to act. And whether or not either will draw for their guns boils down to one man – President-elect Trump.
Given the political uncertainty as the U.K. looks for its next leader, the central bank is expected to wait, but given the urgency of the situation there is also a probability of a rate cut sooner rather than later.