Welcome to Tuesday!
Daily News: Monday, January 29
The beginning of the week is not full of events. However, some important announcements were made. Take them into account!
- Mixed data. The US advanced quarterly GDP was delivered on Friday, January 26. GDP growth slowed down from 3.2% to 2.6%. Meanwhile, analysts predicted 3.0%. However, consumer spending increased at 3.8%, it is the best number in more than a year. Business equipment investment rose at the fastest pace in three years. A key measure of underlying demand delivered the strongest performance since 2014 and inflation picked up will support the rising of interest rates in coming months.
- The power of words. Haruhiko Kuroda announced in Davos that the central back nearly achieved the final inflation target. It caused an expectation of an exit from its massive stimulus and the rise of the yen as well.
- The Aussie is close to reverse. Aussie is supposed to go into reverse because the Federal Reserve continues to raise interest rates and the Reserve Bank of Australia keeps borrowing costs at a record low. The Australian economy is not interested in the strong Australian dollar. Economists predict Aussie trading closer to 70 U.S. cents than 80 cents in 12 months.
- Talks around NAFTA. Canada and Mexica refused to renegotiate the NAFTA dispute-resolution mechanism, that is one of the major points of negotiations between participants of NAFTA. It can lead to a fast exit of the USA from the organization.
- Uncertainty about NAFTA affected Canadian and New Zealand dollar as well. On the daily chart, we can see the fall of both New Zealand dollar and Canadian dollar. Falls are not great, however, continuing uncertainty of NAFTA negotiations can cause another fall.
- A deadline! Donald Trump faced a deadline to impose sanctions against Russia. The Treasury Department has prepared a list of companies and people who will be under sanctions.
In July, Britain's inflation rate rallied for the first time in 2018, thus leaving many UK households feeling quite squeezed by prices, soaring at nearly the same tempo as their wages…
On Friday, the evergreen buck rallied versus its counterparts after data disclosed that the American economy generated more jobs than anticipated In October, thus backing the Fed’s case to proceed with gradual rate lifts…
On Tuesday, gold rallied because uncertainty over the latest developments in Britain’s departure from the EU backed safe haven demand and traders looked ahead for American inflation data to underpin the Fed’s pledge to remain on hold…