The Federal Reserve and ECB policy meeting minutes gave little away, namely that while policy-makers remain concerned about damage to growth from US and Chinese import tariffs they believe that current policy rates are appropriate and that the odds of further rate cuts short term are low. Both the Dollar and Euro are broadly unchanged from yesterday, stuck in their recent narrow ranges.
Significantly the Dollar failed to respond to reports that US President Trump could consider delaying the United States’ planned introduction on 15th December of tariff on $156bn of Chinese imports should the two sides fail to reach a Phase One trade deal in the next three weeks. The Dollar was also seemingly immune to the Philadelphia Fed manufacturing index rising more than expected to 10.4 in November.
Similarly Sterling, which has treaded water in the past five weeks, was unmoved by the release of the opposition Labour Party’s manifesto which envisages significant tax hikes to pay for greater social spending and infrastructure investment.
