Announcements and monetary policy meeting ensure a busy ahead
It’s a data-packed Tuesday, with information emanating from around the world, including a monetary policy meeting from Japan.
The Euro strengthened overnight after overcoming some minor setbacks along the way. The EUR/USD flirted with the $1.15 level, before bouncing back in the early hours of the morning. It reached as high as $1.1656, before retreating back slightly to its current level of $1.1642. The GBP/USD pair also ticked up slightly, currently trading at $1.3204. With both the euro and pound strengthening, the argument could be made that a weakening USD may be the reason that both currency pairs fluctuated.
US stocks had a night to forget after news emerged that the tax reform that the Trump administration wants to implement may be a more gradual process and may not be done in one hit. This has taken markets a little by surprise. This has seen US stocks end the session in negative territory. The Dow was the worst performer, shedding 85.45 points (-0.36%) to close at $23,348.74. The S&P 500 dropped 8.24 points (-0.32%) to 2,572.83, while the NASDAQ shaved 2.30 points (-0.03%) to close at 6,998.96. European stocks were a mixed bag, the DAX adding 12.03 points (+0.09%) to close at 13,229.57 while the FTSE dropped 17.22 points (-0.23%) to end on 7,487.81.
Gold continued to find supporters and picked up a few dollars along the way, adding to its upward movements since last Friday. It has gained $4.40 since this time yesterday, where it currently sits at $1,277.50.
Turning to today’s events and there is plenty of data set for release. There is also a monetary policy meeting in Japan today. While it is expected that settings remained unchanged, investors will be looking for any signs of improving economic conditions. Other data set for release today includes:
Japan – BoJ Core CPI, Housing Starts
China – Manufacturing & Non-Manufacturing PMIs
Canada – GDP, RMPI, IPPI
US – Employment Cost Index, S&P/CS Composite-20 HPI, Chicago PMI, CB Consumer Confidence
Europe – French Flash GDP, French Consumer Spending, French & Italian Prelim CPI, Italian Monthly Unemployment Rate, European CPI & Core CPI Flash Estimate, European Flash GDP