Everything major opens close to Friday’s closing rates
The weekend saw Catalonia’s ex-leader Puigdemont arrested in Germany, Mnuchin declaring Trump is not afraid of a trade war with China.The US considers expelling Russian Diplomates as Ryan already reported yesterday.
David Davis still preparing the UK for a no-deal possibility with the EU although it’s not the envisaged scenario. The best line was: “You don’t expect your house to burn down, it’s less than a one in 100,000 chance, but you have house insurance anyway.”
Then John Williams, the current president of the San Francisco regional branch, is the front-runner to succeed William Dudley as head of the New York Fed, a powerhouse regulating Wall street with a permanent seat at the FOMC.
Elsewhere incoming Reserve Bank of New zealand Governor Adrian Orr today signed a new Policy Targets Agreement (PTA) setting out specific targets for maintaining price stability and a requirement for employment outcomes to be considered in the conduct of monetary policy. The Inflation target range remains unchanged at 1-3% in the meantime. Orr said there is currently not much change expected by adding the employment goal as RBNZ’s model already takes employment into account. Generally speaking the new dual mandate won’t change monetary policy, but it may impact at times…
Note we have NZ Trade Balance out in half hour. Trade balances have lately no thad a big market impact, but worth keeping an eye on ex-and import values for the state of businesses.
For the TRY watchers, Turkey’s Erdogan declared starting operations in Iraq’s Sinjar region. We have seen TRY weaken lately , this should continue to keep pressure on the currency and on Turkey’s very fragile relations with EU.
It’ll be more political and CentralBank headlines surfing this week as it’s a relatively subdued start on the economic data front. Wednesday-Thursday will see the bulk of important numbers hit the screens
Have a great trading week in our company