A Look Into Last Week’s Markets…
Sterling Plummets As Political Uncertainty Mounts
British Prime Minister Theresa May is facing calls to stand down following her disastrous speech at the Conservative Party conference last week. GBP plunged last week, following rumors that PM Theresa May is considering to resign. Even though a statement from the PM’s office later denied such a scenario, it is now evident that the British PM May is facing leadership challenges from within her own party. It is important to note that an interest rate hike by BoE (Bank of England) could offset some of the sterling’s losses, but since a hike is almost fully priced in, politics could still overshadow economics and the GBP may continue to plummet this week.
US Oil And Gas Platforms Close Ahead Of Hurricane Nate
Hurricane Nate, which left at least 22 dead in Central America last week, made its way North through the Gulf of Mexico and threatened the southern United States. The storm has already closed oil and gas platforms at sea, and has damaged cotton and orange crops. Oil prices have also plummeted last week amid signs of increasing production from OPEC members.
Dollar Rallies On Upbeat NFP Report
The U.S. dollar rallied to its highest level against the euro since mid-August last week, as investors bet on more future U.S. interest rate hikes. On Friday the U.S monthly employment report (NFP) revealed that the economy unexpectedly destroyed jobs in September! Non-farm payrolls declined by 33,000 in September, compared to a rise of 169,000 a month earlier. It should also be noted that the unemployment rate unexpectedly ticked down to 4.2% in September.
The week ahead – Key Data Releases To Look Out For
- 10/10 – UK Manufacturing Production (Aug) @08:30 GMT To Affect GBP Pairs
- 11/10 – US JOLTs Job Openings (Aug) @14:00 GMT To Affect USD Pairs
- 13/10 – US Core Retail Sales (Sep) @12:30 GMT To Affect USD Pairs
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