EUR / USD
Currently, the EUR/USD is trading close to the 1.07 level, recovering from a drop to the 1.0670 region caused by recent strength seen in both the USD and treasury yields. Later today, the pair is due to be influenced by a batch of economic reports, with the Eurozone final CPI report due ahead of ECB minutes, US CPI, jobless claims and housing starts and Fed Chair Yellen’s testimony.
The Economic Calendar shows the increasing percentage of Consumer price index.
Brexit American style drives US yield higher
A Trump victory now presents many unknown variables. During his candidacy, Trump said he would build a wall around the southern border of the United States with Mexico, cut up trade deals including oil and remove regulation such as the Dodd Frank law.
The dollar has also recouped some lost ground, though is still showing a 1.8% loss versus the yen. Gold, which had been showing a gain of more than 3%, but lost some of those gains.
The European seem to be pretty shaken, knocking down risky assets.
Japanese and German Q3
Japanese Q3 was expected to grow 0.9% but it increased up to 2.2%. Capital expenditures on the other hand were flat compared to forecasts of a 0.1% increase. External demand, added 0.5% to growth due to a bounce in exports.
On the other hand, German Q3 came weaker than expected. The expected was 0.3% and it came to 0.2%. the Economy Ministry warned about this being possible so it came as not big a surprise after all.