On Tuesday indices in Europe and the US were weak after the long weekend, with the USD bid across the board, commodities were softer. During Wednesday morning’s session, the US dollar has pulled back from Tuesdays highs against the majors;
The strong data from the US on Tuesday reminded traders that that the “data dependent rate hike” from the Fed, might not be as far off as had been expected.
Opening of Parliament
In the UK, today is the opening of parliament, following the general election. The event is filled with pomp and ceremony, and this is the Queens 62nd speech. The speech is read by the Queen, however it is written by the government that has parliamentary control and outlines the policies and proposed legislation for the next term.
-Referendum over membership of EU
-Further Scottish devolution
-Tax cuts for low-earners
-Enhanced counter-extremism bill
The unexpected majority for the Conservative Party put a significant bid into Sterling, with the belief that this was the best outcome for the UK economy. The Party holds a slim majority, and now that the high of the surprise election win has all but passed, the issue of a “Brexit” is likely to come to the forefront.