020 7898 0500Safe haven and risk aversion flows boosted the US dollar (USD) after Monday’s atrocities. It was a stark reminder of the ever present terrorist threat, but also cast more doubt over the pending 2017 European elections. As a result we saw the dollar benefit and push higher across the board. In large, the news coming out of Germany really dominated the newswires on a quiet day in terms of the economic docket. The euro (EUR) dollar rate continued its move lower as chatter continues to persist surrounding the parity of 1:1 exchange rate.
The key reading for the US is the third quarter Gross Domestic Product (GDP) reading on Thursday, which is expected to show an upward revision of 0.1 percent to a healthy level of 3.3 percent. Tomorrow afternoon we have more data on the all-important housing sector, in the form of the existing home sales. Meanwhile another key release is the oil inventory, which could have an impact on the future price of oil and therefore inflation.
