Weekend politics: the euro is under scrutiny
In respect to opening FX prices, it was a quiet one for weekend news this weekend around.
Weekend politics: Greece debt mounting and so too are investor's concerns - NEWS |
There was not a headline story this weekend, although Greece, Brexit and EU politics, in general, will continue to drive risk in markets for the foreseeable future. Indeed China, the US and geopolitics are sure to dominate news wires and headlines this year.
In respect to Brexit news, there are mounting concerns about the outlook for the UK economy. BOE's Saunders was speaking at an IOD meeting in Aberdeen over the weekend and he has suggested that Brexit will have a long-term "modest adverse" impact on UK GDP.
Elsewhere in Europe, Dutch politicians voted unanimously for an inquiry into whether they should drop the euro amid growing scepticism about the single currency. This goes hand in hand with the promises that have come from the far-Right election candidate Geert Wilders, who is leading the polls ahead of next month’s parliamentary vote.If his party wins the elections, he has promised to hold a referendum on the euro.
We also had the Managing Director of the European Stability Mechanism, Klaus Regling, speaking to El Pais today who suggest that there is no banking crisis in Europe with respect to the Italian banks. He said that there are few isolated cases that the Italian government and EU Commission are on top of. He also explained that several EU member states have voted in favour of a Greek programme on the basis that the IMF would participate. Meanwhile, the Italian Economy Minister, Pier Carlo Padoan, "has denied a report in La Stampa newspaper on Sunday which said he threatened to resign if effective reforms and planned privatisations are not carried out," - Reuters
From the US, Trump news was downbeat this weekend, but he received adulation at the Conservative Political Action Conference on Friday, where he took on familiar targets: the intelligence agencies and the press. His new executive order on who will be allowed to enter the U.S. is expected as early as this week - so stay tuned in on the Mexican Peso. "Mr. Trump will make his first address to a joint session of Congress on Tuesday. Democratic lawmakers are planning to give their guest tickets to immigrants who are making positive impacts on their communities, to rebut narratives that cast newcomers in a sinister light," - NY Times
"We may also learn more about Mr. Trump’s thinking about an overhaul of the federal tax code during his address to Congress on Tuesday. Tax returns (which are due on April 18 this year) will most likely not be affected," - NY Times.
US Treasury Secretary, Steven Mnuchin, was speaking in an interview this weekend as well and said that the budget plan would not seek cuts to federal benefits programs such as Medicare.
Over in China, China securities regulator to focus on stability, reform - Reuters
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
