Fed Speakers Highlight Slow News Day

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Fed Speakers Highlight Slow News Day

OCTOBER 15, 2019

The U.S. dollar opens the holiday-shortened week in familiar ranges against most of its counterparts.

Overview

The dollar did see some small gains yesterday, most notably against the British sterling.

President Trump touted his “phase one” trade deal with China which saw the world’s second-largest economy agree to buy more agricultural goods from the U.S.  But markets were underwhelmed once the details of the deal were released. Time will tell whether a grand deal is in the cards.

The Turkish lira fell to a 5-month low yesterday after President Trump said: “big sanctions on Turkey are coming.”

There is no major fundamental data set for release today, but a full docket of Fed speakers will keep traders busy.  St. Louis President Bullard kicked off the day early with a speech in London.  Bullard, a dove, said the economy is facing too-low rates of inflation and greater-than-expected risks for a slowdown.  Bostic, George, and Daly will all speak at events later today.

What to Watch Today…

  • No major events scheduled for today.

Complete Economic Calendar can be found here.

EUR

The Euro made some small gain overnight despite more troubling signs from the region’s largest economy. Investor confidence in Germany declined to -22.8, compared with -22.5 last month.  Confidence is dwindling for good reason: factory orders have fallen year-on-year for 15 straight months and GDP contracted in the second quarter.

GBP

The British sterling has seen heightened volatility over the last week and will continue to be at the mercy of Brexit headlines.  The sterling rallied nearly 4% last Thursday and Friday and the U.K. and the E.U appeared to be inching towards a Brexit deal.  The sterling slipped a bit yesterday as optimism waned.

Separately, a labor report showed troubling signs.  Unemployment rose from a four-decade low and wage growth eased.  The number of people in work declined for the first time since 2017.

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