As geopolitical tensions between the East and West rise, sanctions and souring relations could have lasting impacts on business globally.
- Falling Chicago Fed National Activity Index likely to weigh on USD
- Pound to slide on parliamentary indicative votes?
- Dovish RBA meeting minutes and hints at a rate cut could dampen sentiment in the ‘Aussie’ tomorrow
At the end of last week the US dollar rose as risk-appetite continued to diminish due to trade tensions between the United States and China.
However, this afternoon the release of the Chicago Fed National Activity Index could dampen sentiment in the ‘greenback’.
If the Federal Reserve Bank of Chicago reveals that April’s activity index has contracted for the fourth consecutive month, the US dollar could come under pressure.
Sterling slides on further Brexit turmoil
The pound suffered further losses on Friday as it was revealed that cross-party talks between the Conservatives and Labour ended without breaking the Brexit deadlock.
Previously, Theresa May had said that if the government failed to negotiate a compromise deal with Labour, MPs would get binding indicative votes.
If there is a change to the parliamentary schedule for this week and reports suggest that the deadlock is likely to remain intact, Sterling could continue to tumble.
Hints of RBA rate cut could weigh on the Australian Dollar
On Friday, the Australian dollar remained muted against a handful of currencies as heightened US-China trade tensions weighed on risk-appetite.
Looking ahead to the start of Tuesday’s session the ‘Aussie’ could slide following the release of the Reserve Bank of Australia’s meeting minutes.
If the minutes indicate policymakers are moving closer towards cutting interest rates, sentiment in the Australian dollar could be dampened.
13:30 USD Chicago Fed National Activity Index (April)
18:05 USD Fed Vice Chair Clarida Speech
00:00 USD Fed Chair Powell Speech
02:30 AUD RBA Meeting Minutes
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)