Trends in 2017

US Presidential Inauguration

The inauguration of the 45th President of the United States, Donald Trump will begin on January 19 and will continue for three days. This is reported in the media with reference to Trump’ the graph. The elected president said that on the first day in office as the boss of the the White House he intends to start on the country’s exit from the Trans-Pacific Partnership Agreement. According to Donald Trump, co-operation will be more transparent and a withdrawal from the agreement will contribute to the creation of new jobs in America. In addition, to solve the problem with jobs, Trump has promised to lift the restrictions on the US production of hydrocarbons, including offshore energy and coal.

If you imagine the overall picture of “Trumponomics“, we can see a significant upward trend. The indices are updating the historical highs, and the US bond yields rise. The prospects for the next six months are fantastic, provided Trump remains in power.

Looking forward to the story’s development as early as the twentieth day of 2017.

The US Federal Reserve’s Interest Rate

The markets are considering a 30% chance of the US Federal Reserve raising the interest rates in March. Any statistical information for the dollar will be given sufficient attention. Recall that, according to the December FOMC meeting, there are interest rate rises scheduled in 2017.

New Zealand Inflation

For New Zealand the consumer price index is the most relevant: At the end of 2016, the Bank of New Zealand is mainly focusing on this inflation indicator: The RBNZ expected it to grow. Taking into account the Regulator’s historic low interest rate, it is the CPI that may directly affect the immediate fate of its monetary policy. Recall that the RBNZ cut interest rates three times in 2016.

Brexit true

For the NZD the “out and about” indicator has come to end. Theresa May has promised to initiate the UK’s actual exit no later than March 2017. And you want to believe it, because the EU refuses to discuss the issue prior to the actual initiation of Article 50 of the Lisbon Treaty. Any changes to this date could put additional pressure on the pound, which, respectively, will affect the Bank of England, which could drop to zero interest rates.

Australian trends

The labor market could put additional pressure on the RBA and they had no choice but to proceed with a series of monetary policy easing procedures.

Following in England’s footsteps

Germany’s parliamentary elections will be held in the second half of 2017. We can already see Angela Merkel’s opponents speculating on the subject of refugees and terrorist attacks, thus trying to eliminate her from the political arena. This question remains acute and may be a destabilizing factor for the EU.

It is worth noting that the political calendar for the upcoming 2017 is full of events. The Foggy Albion has set the tone, so we continue to closely monitor the progress of the elections in the EU.

The review was prepared by FIBO Group analyst Andrew Masters.