Bank of England Governor Mark Carney sparked the Pound lower yesterday. ECB President Mario Draghi will be speaking today. The China National Congress began this morning. President Trump continues to talk tax reform.
Trump Offers Christmas Gift, Dow Jones Industrials Near 23,000
Tax reform remained a focal point via the White House on Tuesday, as President Trump declared it will be a nice Christmas gift for U.S consumers. The Dow Jones responded with slight gains and will open just below the 23,000 level today. Housing sector data will come from the States today with Building Permits and Housing Starts figures. The U.S Dollar continues to range trade in forex.
Cautious Gains on Asian Exchanges, Important Data from China Tomorrow
China opened its National Congress this morning. The Shanghai Shenzhen composite has responded with cautious gains. And the Nikkei Index has displayed tentative buying also from Japan. The Yen has been slightly weaker the past day, but remains in a tight range against the U.S Dollar, as it trades near the 112.25 level. Tomorrow Trade Balance numbers will come from Japan and growth data will come from China.
Transitory Inflation Sighted by Carney, Draghi Speaking This Morning
With the use of the word 'transitory', Bank of England Governor sent the Pound lower against the U.S Dollar yesterday. Carney stated he believes the higher inflation being experienced in the U.K will slow down. This signaled to investors the Bank of England is likely not considering more than one interest rate hike in the immediate future. Today employment data will come from the U.K, and European Central Bank President Draghi will be speaking this morning.
Crude Oil Showing Strength, Middle-East Concerning Helping Oil
Crude Oil has shown signs of strength early this week and was able to put in additional gains yesterday. Crude Oil is above 52.00 U.S Dollars a barrel. The commodity may be getting important psychological support because of geo-political concerns emanating from the Middle-East. Crude Oil Inventories data will come from the States today.
More U.K. Inflation Numbers from Britain, Housing Sector Data from States
The Average Earnings Index results from the U.K will be looked over carefully by traders upon its release.
- 8:30 AM GMT U.K., Average Earnings Index
- 12:30 PM GMT U.S., Building Permits
- 18:00 PM GMT U.S., Federal Reserve's Beige Book
Yaron Mazor is a senior analyst atSuperTraderTV.
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This article was originally posted on FX Empire
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