The Single Currency is Weak, Greenback is Lowering As Well
The single currency is weak, but it’s sticking over a short term support versus the greenback and Japanese Yen. Dollar is lowering too. Yen, on the other hands, has started rising. According to Yonhap (South Korea news agency), North Korea has been preparing its military in order to respond to the US accusations, particularly to Donald Trump’s offensive tweets, that were considered by North Korea’s leader as a reason to begin a war. The United States deny this. Yesterday, a few of Fed members spoke about the economy. Charles Evans said the projections were appropriate. He claimed that before lifting rates, there should be increased wage and price pressures and the inflation should start improving. William Dudley sees inflation growing towards 2% in the medium term. December’s rate is priced in 70% odds.
Mario Draghi said ECB should be very careful and slow, and added that economic expansion is strong. Today, Emmanuel Macron will be speaking about reforms in the Eurozone, which include to stabilize the Euro against further issues, a European agency for innovation and a system on start-up funding. The 4th round of Brexit has begun. Today, Theresa May will have a meeting with Donald Tusk (European Council President).
Oil prices increased. The ethnic group of Kurds, living in the Iraq and Turkish territory, had an independence referendum, on which Iraq and Turkey reacted by claiming they would stop the oil exports to the Kurds.
New Zealand NBNZ business confidence dropped from 18.3 to the minimum of 0 this month. New Zealand trade deficit made up NZD -1235 million in prior month.