• Muted growth for Australian economy
  • Trump travels to UK
  • USA employment in focus this week

The US Dollar fell in early trading as Asian markets considered continued concerns about the US-China trade wars and markets have turned to alternative risk-friendly currencies. The Japanese Yen, and Gold, often viewed as the ultimate ‘safe haven’ in many investors’ minds, benefitted. Even Sterling strengthened against its American currency counterpart, thanks to weaker currency partners and a pick-me-up from the political polls. The election uncertainty continues to set Sterling’s fortunes.

Muted growth for Australian economy

The small growth in Australian Gross Domestic Product (GDP) disappointed the Australian Dollar, alongside equally underwhelming service sector figures. Australia’s central bank, the Reserve Bank of Australia (RBA) talked about global trade tensions as a cause of continued economic uncertainty. They also touched on how the effects of existing monetary stimulus have been less pronounced than anticipated. The economy does seem to be improving, slowly, however, and the figures represent some improvement from the shock ten-year low of the previous quarter.

Trump travels to UK

Alongside the latest political poll updates, much of the news is currently focused on US President Trump visiting the UK in advance of the NATO Summit. Talk about timing – with controversy across UK politics, the UK royal family, US trade wars and uncertainty over global politics, what happens over the coming days is sure to throw a spanner in the works for world markets.

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USA employment in focus this week

Across the Pond, the data anticipated most eagerly in the USA this week will be Jobless Claims on Thursday 5th December and the US Bureau of Labor employment report for November, due to be released on Friday 6th December. A strong growth figure is expected, with forecasts looking at 183,000 new jobs, compared to October’s 128,000.

Canada’s monetary policy to remain the same

The Bank of Canada (BoC) interest rate decision was on the radar this afternoon, and, as expected, the Canadian central bank maintained the current rate of 1.75%. They suggested that the Canadian economy is improving, but were keeping the way clear for any measures that may need to be taken in the New Year. Markets do not expect the BoC to make any further changes in January, but there is always market volatility at the start of a New Year, so time will tell.

Eurozone growth figures leave Euro cold 

In Europe, there are a host of Purchasing Managers’ Indices (PMIs) for manufacturing, services and construction this week, along with the Eurozone GDP figures for Q3 2019. Europe’s growth appears as underwhelming as our friends Down Under, showing only 0.1% growth during Q3. The growth outlook for the Eurozone has been downgraded and Sterling has strengthened against the Euro as a result, in addition to some political poll boosts for the Pound.

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