IronFX, Main Points of the Day: Inter-Korean talks, German Coalition and more!

This article is originally referred from IronFX News.

German Coalition talks to continue

• German parties SPD,CDU,CSU neared forming a coalition as a deal was struck on the thorny issue of immigration.
• Also a deal was struck on the energy issue and the next issues to be discussed will be labour policy and health care.
• Discussions are to draw to a closure by Sunday and the final deal is expected to be set up for vote by SPD members.
• As discussions progress and more progress is made, we expect the EUR to strengthen as political stability will emerge.

Hopes grow for inter-Korean talks

• Hopes grow for inter-Korean talks as North Koreas ceremonial leader will visit South Korea this week.
• South Korean prime minister mentioned to US president that good momentum in inter-Korean relationships could continue.
• Trump on the other hand, agreed that North Koreas participation in the winter Olympics could result in “something good”.
• Overall, as inter Korean relationships improve we could see the JPY strengthening as political instability for the region is removed as a factor.

Today’s other economic highlights:

• Eurozone: Markit Comp. Final PMI for January, Survey:58.6, Prior:58.6, 09:00(GMT), neutral to positive to EUR.
• UK: Markit/CIPS Services PMI for January, Survey:54.0 Prior:54.2 09:30(GMT),neutral to negative for GBP.
• US: ISM Non Manufacturing PMI for January Survey:56.3 Prior:55.9, 15:00 (GMT), positive for USD.
• US: Jerome Powell is sworn as chairman of the Fed.

The week ahead:

• On Tuesday early in the Asian morning we get the RBA interest decision. Bank is expected to remain on hold at +1.50% (probabilities 98.9% according to AUDOIS). Also we get New Zealands unemployment rate for Q4.
• On Wednesday we late in the US session RBNZ’s interest rate decision. The bank is expected to remain on hold at +1.75% (probabilities 99.88% according to NZDOIS)
• On Thursday during the European morning we get BoE’s interest rate decision. Bank is expected to remain on hold at +0.5% (probabilities 96.87% according to GBPOIS)

Check out the full report by IronFX today!

IronFX’s Report: Main Points of the Day

Original Source: IronFX News