• CABLE TOUCHES PRE-ELECTION LEVELS
• A MIXED UK JOBS REPORT FAILS TO PROVIDE RELIEF
• EUROPEAN EXPORTS RISE
• CANADA MANUFACTURING SALES DISAPPOINT
Robust US economic data was the main theme of today. US Job Openings, Industrial Production, Housing Starts and Building Permits all beat expectations that gave risk appetite a boost with stocks trading close to record highs. The Dollar continued to outperform with the Euro the only exception.
US President Trump, who had been quiet this week took to Twitter today to add pressure on the Fed to shift to a more dovish stance. Trump stated "Would be sooo great if the Fed would further lower interest rates and quantitative easing. The Dollar is very strong against other currencies and there is almost no inflation. This is the time to do it. Exports would zoom!"
Earlier in the day, the UK labor market remains robust with unemployment falling to 3.8%. Despite this, there still seems slack in the labor market with little signs of wages to rise. The Pound in response to political news has given back all the post-election rally gains with traders now focused on the psychological 1.30 level.