Euro vulnerable amid political turmoil in Italy and France.
US Dollar could gain as CPI data helps boost Fed rate hike outlook.
President warns against Fed hike.
Protests against a tax hike.
President Emmanuel Macron into a speedy retreat that might push France’s deficit beyond EU-mandated limits. If this is approached leniently, Italian populists have said they will demand treatment in kind.
Italian PM Conte and EC’s Juncker are meeting before EU summit. They will attempt to agree on a lingering budget dispute before Thursday’s EU leaders’ summit. Mr Conte is perhaps the most forthcoming of among the leaders of Rome’s recently installed anti-establishment government. If he is unable to at least begin to mend fences with regional authorities in Brussels at this sit-down, the Euro is likely to decline amid worries about punitive action ahead.
US Dollar is at a pivotal point.
In technical and fundamental terms. The flight to safe haven treasury bill’s (Bonds) has been the protection trade of the year with equity markets declining from trade war tensions. Forex Trust Club think this is an overcrowded trade.
It appears that the FED is now getting pressured and criticised to slow down the rate hikes or at least lower their dot plot closer to market averages.
China have decided to adjust their tariffs on auto’s
Trump looks like he is gonna wade in on the Huawei situation to organise release of their CFO. This should hopefully ease tensions between the two nations so they can continue to negotiate trade talks.
BREXIT is now at the point where the deal is accepted or rejected.
NO MORE NEGOTIATIONS.
If rejected there is a strong possibility that a referendum will be called for the nation to vote again and thus delaying the whole project. PM May also faces a vote of no confidence which means a new Tory leader could replace her. This gives Jeremy Corbyn the opportunity to run for PM. Something that nobody in the Tory party or big business wants.
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