Vive la Revolution
2017 is a critical year for European politics not to mention the triggering of Article 50 and Trump.
After testing some key downside levels over recent days, following weaker than expected Chinese industrial production figures, industrial metals have staged a broad rally and appear to be on track for a 4th day of gains, supported by continued dollar weakness.
Currency markets were a little subdued yesterday ahead of today’s FOMC announcement that marks the key event of the week.
It has taken a hurricane to do it, but US gasoline inventories have finally shown a significant fall. Last Wednesday’s data releases showed that inventories fell by 8.4m barrels which brings inventories down well below this time last year.
Industrial Metals have largely eased in recent days following a steady run of price gains across the board. This is despite a weaker Dollar, particularly under pressure against the Euro following the ECB meeting last Thursday where President Draghi gave a firm pointer towards the ECB announcing its decision to taper its quantitative easing program at its October meeting.
Yesterday’s main headline news that really got the market moving was August’s headline CPI inflation number which was firmer than expected.