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May 2017

USD pushes a little higher

Published: Thursday 04 May 2017

  • USD pushes a little higher 
  • Latest French polls suggest Macron is ahead by 18%
By Michael Hart
The main focus overnight was the Federal Open Market Committee (FOMC) however it was rather uneventful. The US Dollar pushed a little higher after the Federal Reserve (Fed) tried to talk down Q1's weakness, by acknowledging the recent weakness in growth and inflation as policymakers attributed it to 'transitory effects'.
There was no change in the expected rate path for the Fed as markets are pricing in over 70% chance of a hike in June with another one due at some point this year. Traders will look to the Non-Farm Payroll report from US to be released tomorrow.  
In France, pro-EU centrist Emmanuel Macron emerged as the most convincing candidate in the final pre-election TV debate with EU-sceptic far-right Marine Le Pen.
According to a viewers’ poll by French broadcaster BFMTV, 63% of viewers voted Macron as the "most convincing" of the pair after the debate. Some analysts called the angry exchange in the debate as extraordinarily violent, bitter and harsh.
The latest poll suggests Macron is still having 18% lead over Le Pen. While Macron is widely tipped to be the next French President, some analysts pointed out that Le Pen will still have a slim chance of winning if turnout rate happens to be ultra-low. Eyes will now turn to the election this Sunday.
In the UK, Prime Minister Theresa May accused that "the events of the last few days have shown that - whatever our wishes, and however reasonable the positions of Europe's other leaders - there are some in Brussels who do not want these talks to succeed."
On the data front Eurozone will release Services Purchasing Managers’ Index (PMI) and Retail Sales. UK will also release Services’ PMI and Mortgage Approvals.

Language Tapes

I bought one of those tapes to teach you Spanish in your sleep. During the night, the tape skipped.
Now I can only stutter in Spanish.

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