Geopolitcs sparked more interest for risker assets amid investors
Euro under pressure, Catalonians situation became more confusing
The mighty dollar has moved up the ladder once again on the back of the hopes that the next head of the Fed would be a hawkish person. This is not to say that the current Chairperson of the Fed isn’t moving the monetary policy. Janet Yellen, the current chairwomen of the Fed, has sent a clear message in her last statement that the consumer prices would accelerate after the period of softness fades away.
Remember, that the Fed has already increased the interest rate several times this year and another rate hike is still on the table towards the end of this year. Given that President Donald Trump wants to trigger that massive infrastructure plan, it would be more appropriate to keep the borrowing cost low, and for that to happen, the chairperson of the Federal Reserve Bank should be a dovish person not a hawkish one.
The European markets are trading higher despite the fact that North Korea issued another statement commenting that the nuclear war could trigger anytime. These comments sparked more interest for risker assets amid investors.
The euro currency is facing pressure as the situation with Catalonians has become even more confusing. Investors are watching the next move by the Catalonian president closely and more importantly the reaction to that move by Madrid.
As for sterling, bulls are falling short of steam as it appears that the Brexit negotiations are heading towards the deadlock situation. The Brexit negotiations have stalled for some time, the major worry is that both sides are not moving from their stance, and time is the biggest enemy for them.
This is because both sides have limited time to have a deal or just walk away without any deal. The UK Prime Minister attempted to unlock the talks and payed a visit to Brussels. However, that did not yield any positive outcome. After meeting each other, both sides reiterated their previous stance in their comments.