Compass Global Markets' Blog

Market Update - 31st October 2017 - Formal Charges Brought Against Manafort, U.S Equities & Dollar Decline

Posted by Patrick Downes on October 31, 2017 at 8:37 AM

The news this morning is that of the house arrest of Paul Manafort and his deputy Rick Gates who have been formerly charged with an array of offences ranging from money laundering and collision in connection with Trump's 2016 Campaign. The US Dollar and U.S equities have sold off on the news of the arrests which is probably of no surprise as it puts in jeopardy Trump's Presidency and if there's anything we know it's that financial markets don't like uncertainty. As further charges are brought if any you'd have to expect volatility in both equity markets and forex to continue to rise and thinking further ahead it may become a catalyst for a thorough U.S equities correction. Watch this space.

Ahead today is local new home sales along with Chinese manufacturing PMI around midday. New home sales figures have been choppy to say the least and while it's not an official government release of information from the likes of the ABS, it still paints a picture on the health of the housing market. New home sales had been flat or negative for the better part of 2017 with the exception of last months figure which showed improvement - again we'll be watching closely to see how new home sales are travelling here and the impact on the Aussie dollar, if any.

Japan also decides on rates this afternoon, with no expectation of change from their current policy of negative rates. Interest rates stand at -0.1% on the island nation.

AUD EXCHANGE RATES:

AUD/USD – 0.7687

AUD/GBP – 0.5819

AUD/EUR – 0.6597

AUD/NZD – 1.1177

AUD/JPY – 87.009

COMMODITIES: 

Gold – A$1660/oz

Silver –  A$21.92/oz

WTI – US$54.19/barrel

DATA RELEASES TODAY:

AUD - HIA New Home Sales

CNY - Manufacturing PMI at midday

JPY - BOJ Policy Rate & Monetary Policy Statement this afternoon

USD - CB Consumer Confidence at 1.00am (tomorrow morning)

***Above rates are indicative wholesale rates and intended as a guide only***

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick - 0431 278 632 

  Email Patrick: patrick@compassmarkets.com

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Topics: Market, Report

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