US equities closed the week well into positive territory last Friday continuing to be driven by Trump’s expected benefits to the economy – with tax cuts and deregulation amongst the most expected benefits. Friday’s University of Michigan’s confidence level for December was stronger than expected at 98 compared to a previous 93.8.
Sentiment in Asia this morning was far more hesitant with the major asian indices manifesting mixed results. Initially the mood was more positive on news that there was a weekend deal for an Oil output cut amongst OPEC and non-OPEC countries.
The Japanese Nikkei was amongst the session’s winners as investors took the cue from the weaker Yen. USDJPY is currently at 115.47 at the time of writing with the JPY at its weakest against the USD, since February this year.
The US Dollar index is at 101.55 at the time of writing, just marginally lower from were it opened, but retaining December highs (101.78 hit today) well within sight. The FOMC is expected to deliver a rate rise at the conclusion of its 2 –day policy meeting late next Wednesday.
The highlight of this week’s events will certainly be Wednesday’s FOMC communication, and Thursday’s BoE rate decision
