The Euro strengthened yesterday as President of Deutsche Bundesbank, Jens Weidmann, spoke at the Central Bank of Austria. In his speech, titled ‘New Momentum for Europe,’ he mentioned how it was not unrealistic to see the European Central Bank raise rates for the first time in mid-2019. Weidmann also mentioned how the end of net purchases is only the beginning of the monetary normalisation process, meaning it is important the ECB start soon.
US President, Donald Trump announced yesterday plans to expel 60 Russian diplomats from the US. The move comes after the UK blamed Moscow for the nerve-agent attack earlier this month on a former Russian spy. Despite Trump seemingly having a close relationship with Russian President, Vladimir Putin at the beginning of his presidency, this move by Trump has shown his support for his European allies. Other European countries have followed suit and expelled Russian diplomats from their own countries.
The US will be releasing the CB Consumer Confidence Report. It is expected that the Confidence Index Figure will increase from last month’s 130.8 reading to 131.2. FOMC member, Raphael Bostic will also be speaking at the Hope Global Forums Annual Meeting.