IronFX Daily Commentary by Sakis Paraskevov | 21/12/2015
December 21, 2015 10:30 am
Main points for today: • Spanish elections end in a hung parliament • Spain’s ruling Popular Party (PP) lost its parliamentary majority on Sunday in an election that saw the two main political parties losing significant ground to two upstarts: the center anti-corruption party Ciudadanos and the left-wing anti-austerity party Podemos. • Having fallen short of reaching the 176 seats needed to win a majority, PP will now need support from other parties to form a government. Due to political differences among the parties, expectations are for the negotiations to form a coalition government to drag on for weeks. This political instability could hurt Spain’s fiscal recovery. • This will also reduce the likelihood of structural reforms following the elections, which could undermine the sustainability of Spain’s debt. Even though there was no major reaction from EUR during the Asian trading session on Monday, the currency could experience some selling pressure over the coming weeks if the political leaders fail to reach an agreement. • Today: • Germany: The PPI rate for November is expected to have fallen deeper into negative territory. This could put some downward pressure on EUR, at least temporarily. • Sweden: Economic tendency survey for December. • Eurozone: The preliminary consumer confidence for December is expected to have decreased. • This week: • Tuesday: US final GDP estimate and final core PCE deflator estimate for Q3. Both are expected to confirm their 2nd estimates and could support the Fed’s view of an improving economic outlook. This could prove USD-positive. • Wednesday: US personal income and personal spending for November. The main focus could be on personal spending, as it accounts for two thirds of the US GDP. The durable goods orders and durable goods orders ex. transportation also for November are expected to have decreased or slowed down. • Thursday: No major indicators on the agenda. • Friday: Japan’s CPI and core CPI data for November.
Main points for today:
• Spanish elections end in a hung parliament
• Spain’s ruling Popular Party (PP) lost its parliamentary majority on Sunday in an election that saw the two main political parties losing significant ground to two upstarts: the center anti-corruption party Ciudadanos and the left-wing anti-austerity party Podemos.
• Having fallen short of reaching the 176 seats needed to win a majority, PP will now need support from other parties to form a government. Due to political differences among the parties, expectations are for the negotiations to form a coalition government to drag on for weeks. This political instability could hurt Spain’s fiscal recovery.
• This will also reduce the likelihood of structural reforms following the elections, which could undermine the sustainability of Spain’s debt. Even though there was no major reaction from EUR during the Asian trading session on Monday, the currency could experience some selling pressure over the coming weeks if the political leaders fail to reach an agreement.
• Today:
• Germany: The PPI rate for November is expected to have fallen deeper into negative territory. This could put some downward pressure on EUR, at least temporarily.
• Sweden: Economic tendency survey for December.
• Eurozone: The preliminary consumer confidence for December is expected to have decreased.
• This week:
• Tuesday: US final GDP estimate and final core PCE deflator estimate for Q3. Both are expected to confirm their 2nd estimates and could support the Fed’s view of an improving economic outlook. This could prove USD-positive.
• Wednesday: US personal income and personal spending for November. The main focus could be on personal spending, as it accounts for two thirds of the US GDP. The durable goods orders and durable goods orders ex. transportation also for November are expected to have decreased or slowed down.
• Thursday: No major indicators on the agenda.
• Friday: Japan’s CPI and core CPI data for November.
Join us for more technical and fundamental analysis: http://www.ironfx.com
To get the latest Forex trading news you should:
• Download the IronFX Research app : http://www.ironfx.com/en/trading-tools/mobile-apps
• Like us on Facebook: https://www.facebook.com/IronFX
• 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
Related Posts: