Both the US$ and stocks rose on Wednesday after the release of the transcript between Donald Trump and the Ukrainian President in which Trump asked for an investigation into corruption charges against Joe Biden’s son.
The transcripts revealed that Trump did ask the Ukraine to investigate the corruption charges but made no direct mention of foreign aid, which has eased fears of a presidential impeachment. Stocks and the dollar liked the news while Gold fell sharply as risk sentiment turned more positive and the need for a safe have diminished.
Politics were front and centre in the UK as well, where Brexit goes from bad to worse with complete deadlock in the UK Parliament, which has sent Sterling lower, dragging the Euro with it. The Jpy and Chf were less in demand as impeachment tensions eased, while the commodity currencies were lower again as the market prepares for an RBA rate cut next week.
Looking ahead, there is little on the calendar on Thursday until the US session, with nothing due from Asia and just the German Consumer Confidence due from the EU (exp 9.7). The US though will have the Q2 GDP (exp 2.0% annualised), Goods Trade Balance – August (exp $-77.35 bio), Wholesale Inventories – July (exp 0.3%), Q2 Personal Consumption Expenditure Prices/ Expenditures (exp 0.4%/1.7%), Pending Home Sales (exp 0.3%mm/-1.9%yy), Kansas Fed Mfg Activity (exp -3.9), Jobless Claims (exp 212K)
Have a good day.
Economic data highlights will include:
Thur: German Consumer Confidence, EU Economic Bulletin, US Q2 GDP, Goods Trade Balance, Wholesale Inventories, US Personal Consumption/Expenditure, Pending Home Sales, Kansas Fed Mfg Activity, Jobless Claims
Market moves, in brief:
FX: DXY 99.00 (+0.70%)
Bonds: US10Y; 1.738% (+5.1%), German 10Y; -0.583% (+3.36%), UK 10Y; 0.455% (+0.91%), Australian 10Y; 0.959% (-1.32%), NZ 10Y; 1.123 (-1.70 %), China 10Y; 3.118% (-0.03%)
Stock Indices: DJI; +0.61%, S+P; +0.62%, NASDAQ; +1.05%, EUStoxx50; -0.54%, FTSE100; -0.02%, Shanghai Composite; -1.00%,
Metals: Gold $1503 oz (-1.87%), Silver $17.90 oz (-3.78%), Copper $2.6115 lb (+0.19%), Iron Ore $92.97 per tonne (NYMEX) (-0.26%),
Oil: WTI $56.65 pb (-0.09%)
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