Single Currency Keeps Lowering, RBA Protocol Muted Aussie
The single currency is the softest currency due to Angela Merkel’s failure to create a coalition and Mario Draghi’s comments. Leader of FDP Frank-Walter Steinmeier claimed that so far there is no need in arranging new election and that leaders of parties should take some time and mull the whole situation. But, if there is no progress negotiations, they would be forced to call the election. The appreciation of Angela Merkel has strongly sunk. Mario Draghi said that it will take time for labor market to improve and increase the wage growth. Overall, the President didn’t make any clear statements, as usual. Yen has mildly reduced, Aussie is subdued as Reserve Bank of Australia has once again stood pat.
British government might increase the divorce bill offer to European Union. There hasn’t been any discussions on the exact number, but some speculate that the offered 20 billion Pounds would be doubled. Meanwhile, Janet Yellen declared she will leave the Federal Reserve Board of governors in February after her term as Chair ends. This is despite the fact that she could stay at the Board until 2024. The Chair showed her appreciation of economic improvement. Now, Donald Trump will have to find candidates to fill 4 seats in the Board.
Today, Britain will release inflation figures, public sector net borrowing and CBI trends total orders, Swiss will announce trade balance, Canada will show wholesale sales and US will feature existing home sales.