Greenback Will Remain The Weakest
Due to holidays in US and Japan, market is muted. The greenback has mildly improved. Still, the currency will end the week as the softest. Next week, though, should be more active, as the Senate will present the final tax bill. Experts assume that the bill will increase US debt. When asked about whether the bill will boost the economic growth, 36% of surveyed were uncertain, 33% disagreed and 19% strongly disagreed.
Japan PMI manufacturing increased to from 52.8 to 53.8 this month, marking a maximum of 3 and a half years. New orders showed a solid rise. The growth pace of new export orders hit the maximum of almost 4 years. But, cheaper yen and increased material prices caused strong cost pressures and input price inflation hit a two and a half year maximum. New Zealand trade deficit reduced to -871 million Kiwi last month. Imports reached a maximum of 5.4 billion dollars. Exports lifted to 4.56 billion Kiwi. Today, Germany will release IFO business climate and US will announce manufacturing and services PMIs.