Last week marked an important day for the UK as the nation hit the polling stations to vote in the next government which would lead the country into the future, facing the immense challenges which are sure to prop up, most notably the Brexit negotiations. The initial outcome was for the GBP to make losses of 3% on the news that the conservatives did not get a majority vote, which would have given them the ultimate deciding vote for implementing Brexit. Markets eventually calmed and are now looking towards news regarding the formation of coalitions and in deed the overall stability of the political system.
Key news releases to watch for today are as follows:
The Italian Industrial Production m/m, will show the change in the total inflation adjusted value of output produced by manufacturers, mines and utilities. A better than expected release could have positive effects on the EUR while a lower than expected print could have a negative effect.
Out of Australia, we have the release of two key events. Firstly, a speech by the Reserve Bank of Australia’s (RBA) Assistant Governor will either see the AUD strengthen further or fall back to lower prices. Traders will be looking for positive comments from the speaker in hopes of gaining traction for a move higher while sellers will look for negative comment from the speaker in hopes of driving the AUD lower.
Later in the Asian session we have the release of the NAB Business Confidence figure which will either reconfirm the AUD strength if the figure comes in better than expected, implying that business are pessimistic on the out view of the Australian economy. Or, a worse than expected number could see the AUD weaken as buyers take profits and opportunistic sellers re-enter.