Eurozone flash services PMI beat expectations yesterday, whilst manufacturing PMI posted slightly worse than expected. However, the figures both showed the sectors are continuing to expand.
US President, Donald Trump gave a key note speech at the World Economic Forum in Davos today. His speech mirrored the ‘America First’ theme, however he mentioned ‘America first does not mean America alone,’ as he suggested businesses should invest and expand within the United States. Last night Trump also mentioned he ‘ultimately’ wants a stronger Dollar, helping the Greenback regain some of the losses against its major counter parties. However, the advance GDP reading for the final quarter of 2017 disappointed markets, posting a worse than expected 2.6%, as a downturn was seen in private inventory investments.
The US Treasury Secretary, Steven Mnuchin, back tracked from Wednesday’s comments over the benefits of a weaker Dollar, by saying the ‘dollar’s short-term direction is not a cause of mine one way or the other.’ He also continued to mention his comments on Wednesday were not intended to violate the G20 commitment and he was not intending to move the Dollar.