- Chinese trade surplus grows
- Federal Reserve statement awaited across the pond
By David Johnson
Starting salaries at British companies are rising at their fastest pace in many years. It is a reflection of the uber-low unemployment rate and the shortage of good staff. By way of contrast, the Royal Institution of Chartered Surveyors (RICS) reported that their House Price Indicator has slumped to a six year low. Such, I guess, is the uncertainty we all face in the next five months. In spite of the mixed data, hints of an imminent Brexit deal announcement have kept the Pound in an upward trajectory against most other currencies, including the US Dollar, Euro and the Australasian and Canadian Dollars. Traders will also be eyeing tomorrow’s UK economic growth data, where the forecasts are positive.
Chinese trade surplus grows, but below forecasts
This morning started with a slightly lower than forecast Chinese trade surplus. Given recent mixed Chinese data that was perhaps to be expected, but the surplus still grew compared to last month. This comes as the US President is mooting whether a deal can be done with China on trade. He will, no doubt be looking for some positive news after losing control of one house in Congress.
Markets await US employment data and Federal Reserve Statement
US data includes the weekly Jobless Claims today. Approximately 214,000 fresh applications for welfare benefit are expected. Anything higher will be negative for the US Dollar and vice versa. Any movement there will be tempered by the Federal Reserve’s statement. This is an opportunity for the Fed’s Open Market Committee (FOMC) to share their views on the prospects for the US economy. Sometimes this is enlightening, but more often it is the same information as the last interest rate statement.
European Central Bank economic announcements underwhelming
We had the European Central Bank’s economic bulletin this morning. This was a pretty modest report and the statement citing “ongoing broad-based expansion of the Euro Area economy and gradually rising inflation pressures” kind of sums up the whole report. The Euro gave a ‘meh’ response.
And Jim Acosta, a CNN reporter who often criticises the US President, has been banned from the White House and been called a ‘rude terrible person’ person by the President when he refused to have the microphone removed from him during a press conference. Acosta felt he had not received an answer to his questioning over the caravan of people heading for America’s southern border. I read once that if you aren’t ruffling feathers, then you aren’t a reporter.