Main news of last week was the publication of the minutes of both meetings of the European Central Bank and the Federal Reserve.
The first ones to be published were the Fed one. There was a profound optimism among the various central bank officials led by Janet Yellen thanks to the economic growth, despite the natural disasters and crashes that touched the country in the month of September.
The employment rate is on the rise as well as spending on consumption and production.
The only thing that continues to worry is inflation that could have negative effects on the economy.
Unlike market thinking, Fed members have been quite united on the decision to take on interest rates. The decision then led to a gradual increase in rates.
After Fed minute, the euro dollar exchange rate was above the 1,18 threshold. To determine the strength of the EUR / USD exchange rate was above all the weakness of the US dollar which was affected by US concerns about inflation.
The ECB reports have clarified what happened at the October monetary policy meeting.
The verdicts focused particularly on Quantitative Easing and its extension until September 2018 and beyond. Not all Council members agreed because of the risks posed by the imposition of a clear deadline for the program. Among the dangers, the ECB reports cited the tightening of financial conditions in the Eurozone.
The publication of these minutes confirmed the pace of the euro dollar exchange rate that continued to rise.
However, EUR / USD fluctuations were also determined by other macroeconomic data published in the two countries.
The first data arrived from the Eurozone is the consumer confidence that rose in November.
The data has in fact gone from -1,0 (revised at -1,1) of the previous survey to +0,1. Analysts expected an improvement in confidence to -0,8.
Subsequently, during the week, the Eurozone manufacturing, composite and services SMEs came to surprise the market in November.
The manufacturing SME, which in the previous survey had recorded 58,3, marked 60,0. The composite SMEs, however, went from 56,0 to 57,5. Lastly, the SMEs of services was 56,2, while the last survey was 55,0 percent, and the consensus amounted to 55,1.
The various SMEs indices have also been published for the United States. The US manufacturing SMEs of Markit declined from 54,6 to 53,8. Analysts predicted 54,8.
The tertiary SMEs was 54,7. The previous survey had a value of 55.3, while the consensus had expected 55,6.
The market movers of the week from November the 27th to December the 1st will keep investors attached to their monitors.
Many, in fact, will be the events to be closely monitored. First of all, Eurozone inflation, US labor market data and various SME indices coming from different countries.
Under the investor magnifying glass there will be also the Beige Book of the Fed and the long-awaited OPEC meeting where manufacturers (inside and outside the Cartel) will have to decide to extend once again the historic agreement agreed in November 2016.
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