American FX Outlook: The US government shutdown drives Dollar lower
|What you need to know before markets open:
- The US Dollar edged lower on Monday as investors are weighing the impact of the US government partial shutdown that came into force over the weekend.
- The German Social Democrats voted in favor of entering the coalition talks with Angela Merkel’s CDU/CSU.
- The global economic outlook for is positive, but world’s elite is worried as it gathers for the World Economic Forum in the Swiss town of Davos for the annual conference.
- The US Senate is set to continue to reach the deal bringing the US government back to life.
Monday’s market moving events
- ECB President Mario Draghi and the executive board member Benoit Coeure are set to participate at the Eurogroup meeting in Brussels.
- IMF releases updated outlook for the world economy.
- Chicago Fed index is expected to rise to 0.44 in December
- Canada’s wholesale sales are set to increase 0.6% m/m in November.
Major market movers
- The US Dollar index fell after the US government shutdown weights on the US Dollar, but the extent of losses concentrate to EUR where the news of German coalition progressing supported the currency together with Bundesbank’s judgment of German economy.
- The Canadian Dollar is set to remain unaffected by minor macro data after last week’s Bank of Canada rate hike.
Earlier in Asia/Europe
- German coalitions talks are setting the stage for Angela Merkel to become German chancellor for the fourth time in a row.
- The German Bundesbank published its monthly bulletin concluding that the German economy ended 2017 in “an excellent” form.
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