It’s all about the US dollar this week with another Fed rate hike anticipated this Thursday. The US Federal Reserve is set to raise interest rates for a third time this year to prevent the economy from growing too fast.
Meanwhile, the European Central Bank’s President Mario Draghi gave his regular economic update to the EU Parliament. He began with phrases lifted from the ECB policy statement, maintaining its neutral bias. However, he predicted a pickup in underlying inflation.
In other news, tension between Washington and Beijing continue to escalate with new tariffs between the two economic superpowers coming into effect on Monday. Global equity indices took a defensive stance, and Wall Street pushed lower after starting the day in the negative territory.