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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!
Original Source: IronFX News