How To Guides
- Childbirth & Education
- Legal Formalities
- Pensions & Benefits
- Property & Accommodation
Did you know...?
...you can learn Spanish at a variety of locations across Spain, online or residential and day courses in Spain?
Regardless of your standard, and whatever level you wish to reach Don Quijote has a program to suit your needs!
- Airports and Airlines Spain
- Paramount Theme Park Murcia Spain
- Corvera International Airport Murcia Spain
- Daily brief -Thursday 27 April 2017
- When Expat Eyes Are Smiling
- Meet Wincham at The Homes, Gardens & Lifestyle Show, Calpe
- QROPS 2014
- Spain Increases IHT in Valencia & Murcia
- Removals to Spain v Exports from Spain
- The Charm of Seville
- Gibraltar Relations
- Retiro Park : Madrid
- Wincham announce opening of Marbella office
- Community Insurance in Spain
- Calendar Girls
- Considerations when Insuring your Boat in Spain
- QROPS – HMRC Introduces changes that create havoc in the market place
- QROPS – All Change From April 2012
Daily brief -Wednesday 1 March 2017
Fed trumps Trump
Trump 2 - 4 Dudley
Donald Trump was unusually conciliatory when he addressed Congress last night. He was also, however, longer on rhetoric than fact. So what could have been a compelling speech by the US president was overshadowed by William Dudley, the president of the New York Federal Reserve.
In an interview with CNN Mr Dudley said the recent economic data had made the case for a rate increase "a lot more compelling". As the ranking regional Fed chief on the Federal Open Market Committee Mr Dudley's words carry more weight than his peers. With that in mind, and in light of his usually dovish inclination, the comment led investors to infer that the Fed is doing its best to prepare markets for a rate increase in two weeks' time. Yesterday morning financial futures pricing gave a 50% likelihood to a March increase: that chance has now increased to 80%.
Consequently the US dollar delivered the joint-best performance on the day, adding two thirds of a cent against sterling. It shared the lead with the krona, which was helped by strong Swedish retail sales data and by a punchy 1.0% expansion of gross domestic product in the fourth quarter of 2016.
Making America great again
In his speech Mr Trump spoke of gleaming railways, massive military spending, border security and millions of new jobs. There is doubt, however, about where the money will come from, especially when tax cuts (which were not directly addressed last night) are factored in. It could therefore be a while until the economy feels the benefits of his strategy.
On its own Mr Trump's speech might have had a dampening effect on the dollar. But it wasn't on its own. Mr Dudley's remarks, and those of his colleagues in recent days, gave investors something else to pitch at. Their focus in the immediate future will be on the Federal Reserve and the decision it announces on 15 March.
Tuesday's US economic data did nothing to detract from expectations of an increase. House prices were up by an annual 5.6%, consumer confidence improved by three points to 114.8 and the Chicago purchasing managers' index jumped seven points to 57.4.
PMIs all round
As ever on the first of the month, the bulk of the day's ecostats will made up by purchasing managers' index readings, most of them from the manufacturing sector. There will also be plenty of other figures to fill in any gaps as well as a rate announcement by the Bank of Canada.
Overnight Australia reported a 1.1% expansion of GDP in the fourth quarter, which took the Aussie a third of a cent higher against the pound. Two of the three Chinese PMIs exceeded forecast while Sweden's manufacturing PMI came in at a healthy 60.9. Nationwide's index of UK house prices was up by 4.5% in the year to February.
Several more PMIs are yet to appear and tonight brings Australia's balance of trade figures.
More Blogs By Daily Market Brief
- Daily brief -Thursday 27 April 2017
- Daily brief -Wednesday 26 April 2017
- Daily brief -Tuesday 25 April 2017
- Daily brief -Monday 24 April 2017
- USD weekly currency update-21 April 2017
- EUR weekly currency update-21 April 2017
- Daily brief -Thursday 20 April 2017
- Daily brief -Thursday 13 April 2017
- Daily brief -Wednesday 12 April 2017
- Daily brief -Tuesday 11 April 2017