The Dollar rose as the White House’ newly appointed Economic Advisor, Larry Kudlow showed his support for a stronger Dollar, by mentioning he would like to see the currency stronger than it currently is, as ‘a great country needs a strong currency’. He also believes the US should proceed with the second stage of the tax overhaul plan, which will make the tax cuts to individual permanent.
Negotiators from both the UK and EU are set to meet this weekend in an attempt to come to come up with a deal on the transition period, before the next EU summit meeting next week. The deal will then be signed off by the 27 members at the meeting. However, the Irish border still appears to be a sticking point in the negotiations. In a meeting, the EU decided they would need to see further progress on this issue before they are willing to approve the transition deal.
There is a quieter end to the week, with no high tier data on the economic docket. In the US, the University of Michigan will be releasing the Prelim Consumer Sentiment and Inflation expectations. The JOLTS Job Openings figures will also be released, expecting to post 5.91m. They will also release the Building Permits and House Starts figures, expecting to post 1.32m and 1.29m respectively.