Over the weekend Argentinians took to the poll to elect their next leader, opposition’s party candidate Maurico Macri is currently ahead in the exit poll with more than half of the votes counted. If this holds, it will be the first time in more than a decade the opposition is defeating the incumbent leader. Argentina is South America’s second largest economy and the new leader has promised to tackle corruption and crime as well as open the economy to the investment and most importantly to abolish price control.
FOMC member, FED Williams delivered a speech over the weekend and in his speech, he acknowledged the fact that there is a strong case for a rate hike in December. He expects the economy to see good data over the next couple of weeks and also considering the labor market is strong at the moment. He also said rate hike will be gradual and expects inflation to move toward the 2% target.
USD has been strong over the Asian trading session; Eurusd has dropped all the way to 1.05 while commodities are making a new yearly low since 2009. Oil prices continue its sell off from last week as WTI prices are now trading below $41.00.
We might see a USD rally all through the week as market seems to be priced ahead of the potential rate hike in December.
Major economic event for this week are:
Monday: Existing Home sales USD
Tuesday: German GDP EUR
German IFO EUR
Wednesday: Core durable order USD
New Home sales
Trade Balance NZD
Friday: UK GDP
Also, let us not forget that this week is bank holiday in United States, this means US cash equity market will be closed on Thursday and Friday.