Warren Buffett is not a fan of Donald Trump. The Oracle of Omaha made that abundantly clear earlier this month when he ripped into Trump over his war of words along with the family of a Muslim American soldier who was killed in active duty.
Yesterday, we saw a mild rebound along with the USD versus others major currencies. Overall the US dollar is moving in a range and all investors are awaiting the Fed Chairman Yellen’s speech tomorrow. While the Jackson Hole Economic Symposium, beginning today at 1400GMT, will certainly most likely dominate the headlines as a ‘who’s who’ of Global Central Bankers gather in Wyoming. Markets will certainly stay cautious ahead of the event. Today, German IFO Business climate will certainly release at GMT 08:00, durable goods orders and Unemployment claims will certainly release during US session later today.
The arrival of September is a big deal for the global financial markets, as traders shake off the summer doldrums and get back to action. The month of September will be especially critical for Europe, a region still struggling along with weak economic growth and uncertainty stemming from the United Kingdom’s decision to quit the EU back in June. Traders looking to stay up to speed on European markets must mark their calendars for the following events.
The United Kingdom has actually been the centre of attention following its shocking decision to leave the European Union (EU) on June 23. But quite few have actually asked what the remaining 27 EU members are looking to achieve once the UK formally notifies Brussels of its intent to leave the bloc.
It was lackluster day yesterday and so far today, as volumes are on the lower adverse of normal. The reason is not only the lack of important data releases, yet additionally the fact that brand-new hints in regards to the direction of interest rates ought to be given on Friday as Janet Yellen speaks. Today, Germany will release Q2 GDP final while US will release estate price index, existing house sales and crude oil inventories.
- Donald Trump highlights benefits of weaker dollar
- Wall Street in the process of recording 4th consecutive quarter of earnings decline
- S&P 500 Index has actually averaged 9.7% CAGR under Democrats and 6.7% under Republicans
- easyMarkets warns versus Trump’s ‘wildcard factor’ on financial markets
Stocks, currencies and bonds are all sensitive to political change and a US presidential election is always a period of uncertainty for the markets. So how are the various markets likely to be impacted by the run up to the 2016 US presidential election, which takes place on 8 November?
There is a string of news today, including PMI and housing sales in the US. Yesterday was not an eventful day as the USD was flip flopping between gains and losses. Markets now wait for the Janet Yellen’s speech on Friday, 26th August. The big question course if she will join the other 2 FED members last week, calling for rate hikes sooner very than later. If that happens, then a lot volatility can be expected.
The USD ended last week taking a pounding versus the other major currencies including the GBP, the YEN, EURO, Swissy and the CAD. It only performed much better than the Aussie which had an even worst week.
UK consumers defied projections made about the economic consequences of the Brexit result as retail sales increased during the month that followed the referendum. Weather conditions additionally contributed to increased sales.
The economic calendar is fairly thin today, and this week in general. Focus will shift on Fed Chairwoman’s Janet Yellen’s speech on Friday. Overnight, the USD index gained as yet another Fed member (Stanley Fischer) reiterated that interest rates might increase this year after Brand-new York Fed president William Dudley, warned last yet that the market is underestimating this likelihood.