Today’s Key Market Drivers – 12th July 2017
Donald Trump is back in the headlines again this week, impacting the value of the US Dollar but this time it’s Donald Trump Junior and not the US President. Rumours have been running hot since last year’s US Presidential election that the Russians tried to influence the election campaign. On Tuesday Donald Trump Jnr released a series of emails, which appear to show Russian bias towards his father’s campaign with the Russians offering to provide incriminating evidence about Hilary Clinton. The US Dollar fell on the latest Trump email news and Janet Yellen’s testimony before Congress on Wednesday looks like being the next hurdle for the US Dollar to get over.
If you are wondering why the British Pound suddenly fell overnight look no further than Bank of England Deputy Governor Ben Broadbent who when speaking on Tuesday failed to support comments by other BOE committee members that interest rates in the UK should soon rise. Broadbent’s comments sent the Pound lower against all of its major rivals and today’s release of the latest UK Unemployment figures and Average Weekly Earnings will be key to whether or not the Pound can recover and move higher or fall further. The Pound was also helped lower by comments made by US Fed official Brainard who said the Fed should begin to unwind its balance sheet shortly provided the economy continued to improve.
Looking ahead to today’s economic calendar the Bank of Canada will release its latest policy statement on interest rates today with expectations rising in recent days the BOC will raise the official cash rate from 0.5% to 0.75%. Janet Yellen testifies before Congress and these two Central Bank events are scheduled to be the key currency market drivers in the coming 24 hours.
About the Author: Andrew Barnett
Andrew is a professional trader and successful investor who has a strong focus on education. He is a regular Sky News Money Channel Guest and one of Australia’s most awarded and respected financial experts, and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar. Director at LTG GoldRock, Andrew Barnett, guides thousands of traders around the world in the live market on a daily basis, advising them on buy and sell directions, as well as trading his own personal account. Andrew, a regular key-note speaker at trading and wealth-creation events throughout the Asia Pacific region, is an authorized representative registered with the Australian Securities and Investment Commission (ASIC).
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