IronFX Daily Commentary by Charalambos Pissouros | 27/01/2017
January 27, 2017 9:42 am
Trump administration places deregulation at the top of its agenda • Vice Pres. Pence: dismantling Dodd-Frank act is a priority (deregulate financial services). • Importantly, Republicans support this, implying Congress will probably pass it with no resistance. • This is a USD positive (pro-growth) in the short-term. If there’s more talk on this, USD may gain. • Also, could boost equities in the financial sector (banks, etc). • Overall, outlook for USD may be turning back to positive. New gov. is very active, looks like it intends to keep its promises (fiscal & regulatory).
Japan’s inflation remains subdued • Japan’s CPIs improved slightly in Dec., but remain soft overall. Headline rate declined, core rate rose (underlying infl. more important). • Unlikely to trigger a response from BoJ next week. We exp. the Bank to remain on hold for a while.
Today’s highlights: • Sweden: Retail sales for Dec. are exp. to decline, which may hurt SEK a bit. • US: 1st estimate of Q4 GDP is exp. to have slowed. We see upside risks to the forecast, perhaps for a smaller-than-exp. slowdown. If so, USD-positive. Also, durable goods orders for Dec. are exp. to have risen, which may further support USD. • Speakers: UK PM May will meet US Pres. Trump. Market focus will be on the prospect of a US-UK trade deal. If they send optimistic signals regarding that possibility, GBP could gain.
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Trump administration places deregulation at the top of its agenda
• Vice Pres. Pence: dismantling Dodd-Frank act is a priority (deregulate financial services).
• Importantly, Republicans support this, implying Congress will probably pass it with no resistance.
• This is a USD positive (pro-growth) in the short-term. If there’s more talk on this, USD may gain.
• Also, could boost equities in the financial sector (banks, etc).
• Overall, outlook for USD may be turning back to positive. New gov. is very active, looks like it intends to keep its promises (fiscal & regulatory).
Japan’s inflation remains subdued
• Japan’s CPIs improved slightly in Dec., but remain soft overall. Headline rate declined, core rate rose (underlying infl. more important).
• Unlikely to trigger a response from BoJ next week. We exp. the Bank to remain on hold for a while.
Today’s highlights:
• Sweden: Retail sales for Dec. are exp. to decline, which may hurt SEK a bit.
• US: 1st estimate of Q4 GDP is exp. to have slowed. We see upside risks to the forecast, perhaps for a smaller-than-exp. slowdown. If so, USD-positive. Also, durable goods orders for Dec. are exp. to have risen, which may further support USD.
• Speakers: UK PM May will meet US Pres. Trump. Market focus will be on the prospect of a US-UK trade deal. If they send optimistic signals regarding that possibility, GBP could gain.
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To get the latest Forex trading news you should:
• Download the IronFX Research app: http://goo.gl/jhQIxO
• Like us on Facebook: https://www.facebook.com/IronFX
• Follow us on Instagram: https://www.instagram.com/ironfx
• Follow us on LinkedIn: https://goo.gl/wSEbPN
• Follow us on Twitter: https://twitter.com/IronFXGlobal
• Circle us on Google+: https://www.google.com/+Ironfxglobal
• Subscribe to our Channel: http://bit.ly/1foFmCU
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