Today’s key events are very much Euro and US Dollar-centric.
On the continent, German MPs are widely expected to cast their votes in favour of the third-time-lucky Greek bailout package later today. It is believed by some that MPs think that a proportion of the Greek debt could be written off at this point, with the Greek taxpayer having to take the brunt of it. Thus far the IMF have been tight lipped with no assurances or comments being made as of yet, but it is widely anticipated.
Across the pond the release of the Federal Open Market Committee's (FOMC) minutes take centre stage later today. The markets will be keen to see if there is any clarification on a possible September rate-hike. The FOMC have previously used the minutes to hint on the direction of the rate path and any change in the language used will be key to their thinking.
A key caveat for a possible hike has always been the strength of the labour market, with the FOMC previously stating they are looking for "some further improvement". Unemployment dropping to a 7-year low in the month of June and steady monthly increases in non-farm payrolls could further the possibility of a hike.
However, troubles in China and the impact on overall global growth could be a factor to consider. Discussions are likely to highlight the strength of the greenback and how a stronger Dollar could affect future US growth.
Posted in Daily Market News on Aug 19 2015
Well, the Chinese saga seems like it is still a long way from concluding. We saw that again new lows were tested by Asian shares because of the concerns that demand from China will slow down the economy for all the nations that are tied to its consumption.VIEW FULL ARTICLE
Posted in Daily Market News on Aug 18 2015 by Ciaran Pennington