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The big event of the day is unquestionably the President Trump address to a joint session of Congress, where the market will be looking for more detail on policies that have been responsible for fueling a surge in risk assets and supporting the US Dollar on dips in 2017. US GDP is also due and should not be overlooked. read report
The Pound has come under pressure on a Times of London report that PM May is preparing for the prospect of Scotland calling a second referendum. Clearly this is a development that will need to be watched closely as it significantly increases odds of a UK breakup, particularly in light of Brexit. US durable goods ahead. read report
Into Friday, most currencies are up against the US Dollar on the week, though amongst the developed currencies, no dramatic moves, with only the Pound up by just over 1%. The Euro and Swiss Franc are actually mildly lower despite gains in the latter half of the week. Canada CPI, US new home sales and Michigan sentiment ahead. read report
On Wednesday, in the FOMC Minutes, the Fed highlighted that “many participants expressed the view that it might be appropriate to raise the federal funds rate again fairly soon.” The question the market is trying to answer into Thursday is exactly which interpretation of ‘fairly soon’ should it apply. read report
The combination of European political risk and ongoing hawkish Fed speak have been helping to support the US Dollar, but not as much as one would think. Today's FOMC Minutes will be important to watch, as any indication in the language the Fed is seriously considering March as a live decision, could really ramp the Dollar. read report
