FINANCIAL MARKETS LOOK TO ELECTION OUTCOMES AND GLOBAL GDP RESULTS

EURO AND KIWI REACT

As the new trading begins, traders will digest the results of Sunday's German Federal election result, with foreign exchange markets likely to react via the euro currency. The kiwi should also become volatile, as New Zealand's ruling National Party won the most votes in the country's general election over the weekend, but fell short of a majority, and now need to form a coalition government.

Later in the week, we see GDP results from the United Kingdom, United States and Canadian economies. We also have an important interest rate decision from the Reserve Bank of New Zealand on Wednesday. The U.S dollar will also be volatile, as we see the new draft of the proposed U.S tax cuts, from the Trump administration.

Monday 25th September, Bank of Japan Meeting Minutes

The Bank of Japan publishes a study of economic movements from last week's policy meeting minutes, which review economic developments inside and outside of Japan and indicate any changes in fiscal policy.

The minutes may touch upon why new board member Goushi Kataoka, last week dissented to the BOJ's decision to maintain its interest rate targets. It should also focus on why the BOJ reasoned that current monetary policy was sufficient to push inflation up to two percent target.

Tuesday 26th September, U.S Consumer Confidence

U.S consumer confidence is expected to fall from elevated levels for the month of September, after the August headline figure measured the second highest reading of 2017.

U.S consumer confidence is a leading indicator for the U.S economy, as it can predict consumer spending, which plays a major role in overall economic activity. Higher readings point to higher consumer optimism, and are usually U.S dollar supportive.

Wednesday 27th September, RBNZ Interest Rate Decision

The Reserve Bank of New Zealand is widely expected to keep interest rates unchanged at 1.75 percent, for the seventh consecutive month.

New Zealand central bank governor Graeme Wheeler will step down when his term ends after this meeting, he will be replaced by Deputy Governor Grant Spencer, who will be at the helm of the Reserve Bank for a further six months.

Thursday 28th September, United States Q2 GDP

The United States economy releases quarter-on-quarter Gross Domestic Product figures for the second fiscal quarter. The consensus forecast shows the U.S economy expanding at a rate of three percent, far exceeding the first fiscal quarter's 1.2 percent increase.

Last month, the U.S dollar moved higher, after second quarter Gross Domestic Product was unexpectedly revised higher. Economists had forecasted only a slight increase of 2.7 percent from 2.6 percent, however, the headline GDP figure came in at a robust three percent, on the back of much stronger U.S consumer spending.

Friday 29th September, German Unemployment Change

German Unemployment Change measures the change in the number of unemployed people during the previous month.
A higher than expected reading should be taken as negative for the euro currency, while a lower than expected reading should be taken as positive for the euro currency.