Market Snapshot – Focus on Pound and Dollar

Focus on the UK Budget

The focus for the day would be on the pound and the dollar. We are going to have the UK Budget and the outlook for the coming year from the UK and it remains to be seen whether this would be useful for the embattled UK PM May to get some wriggle room out of the current troubles that she has been facing. Over the last few weeks, she has had to counter a lot of attacks from with her own cabinet and her own party and this has only added to her domestic woes along with a struggling economy. She also has to deal with the Brexit talks that are still ongoing and there are increasing rumors that the UK might just walk out of the talks with no deal being made. We do not know whether that would be a bright idea but if the plans are such, then we could see her coming under even more pressure in the coming days.

Dollar Awaits the FOMC

The other big news event of the day is the release of the FOMC meeting minutes which would provide an opportunity for the traders to know whats on the mind of the Fed members with regard to the rate hike in December and for the further rates hikes in 2018. The market would be expecting the underlying tone of the minutes to be bullish and this should help to keep the dollar strong in the short term.