oanda_logo
  • Sign in
  • Open an account

Sign in

Select account:

  • Currency converter
    • Converter
    • Tools
    • Mobile
    • Live rates
    • Historical rates
    • Embed converter
    • Help
  • FX Data Services
    • FX Data Services overview
    • Exchange Rates API
    • Corporate FX transfers
    • Historical currency converter
    • Contact us
    • Blog
  • OANDA Group
    • About OANDA
    • Media centre
    • Careers
Logotype
The Beat of the Global Markets
  • Home
  • News Events
    • Brexit
    • COVID-19
    • Earnings season
    • Non-farm payrolls
    • Trade war
    • US election
  • Markets
    • FX
    • Indices
    • Commodities
    • Crypto
  • Multimedia
    • Podcasts
    • Videos
  • Economic calendar
  • Analysts
Home/FX/Indices/Newsfeed

CAC Posts Gains as Fed Continues Hawkish Message

June 20, 2017 Share Print 0

The CAC index has posted gains in the Tuesday session. The index has gained 0.37% and is currently trading at 5330.57 points. On the release front, the Eurozone’s current account surplus dropped sharply to EUR 22.2 billion, well below the estimate of EUR 31.3 billion. This was the lowest surplus since July 2016.

The Federal Reserve issued a hawkish rate statement at last week’s meeting, and the Federal Reserve of New York President Charles Dudley continued the upbeat message on Tuesday. Dudley cautioned the Fed against halting its current tightening cycle. Dudley said that he was not concerned with inflation levels, which are at 1.5 percent. Dudley’s upbeat remarks have sent global stock markets higher. If other FOMC members also wax positive about the economy, the odds of a December (or even September) rate hike could increase.

France’s long election season is finally over, after the second round of parliamentary elections on Sunday. President Emmanuel Macron’s En Marche easily won a majority of seats in the National Assembly, garnering about 61% of the vote. This was somewhat lower than recent polls, which had predicted that Macron would win as much as 80% of the seats in parliament. Still, it’s an impressive victory for the young and charismatic Macron, whose party is barely a year old. Macron ran on a pro-business agenda, promising to relax regulations and reform labor laws in order to make the French economy more competitive, but France’s powerful trade unions are sure to push back against any legislation that will take away rights or benefits from workers. The unions have not shied away from going on strike or organizing mass protests in past conflicts with the government, so Macron will be hard-pressed to implement reforms while keeping peace on the labor front.

One year after the Brexit referendum, which stunned Britain and the European Union, the two sides formally commenced negotiations on Monday in Brussels. The first day was primarily a photo-shoot opportunity, and the sides were on their best behavior. The parties published a concise Terms of Reference for the negotiations, which provided an outline of the talks as set by the Europeans. The paper pointedly did not mention trade talks, but rather listed the initial issues that will be discussed:  1) legal status of EU citizens in the UK; (2) Northern Ireland/Ireland border; and (3) financial obligations of the UK to the EU. With Prime Minister May trying to cobble together a minority government, her position is much weaker than before the disastrous election, and the British position has become more flexible. Philip Hammond, the British finance minister, has said that he wants a business-friendly and pragmatic Brexit and that no deal would be bad for the UK. Hammond did, however, warn the Europeans not to craft an agreement that punished the UK for leaving the club. The negotiations are expected to resume on July 10, when the parties will delve into substantial issues.

Fed Talk Gives Dollar a Boost

Tuesday (June 20)

  • 4:00 Eurozone Current Account. Estimate 31.3B. Actual 22.2B

*All release times are EDT

*Key events are in bold

CAC, Tuesday, June 20 at 9:00 EDT

Open: 5330.58 High: 5339.55 Low: 5330.83 Close: 5330.57

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

  • Bio
  • Google+
  • Latest Posts
Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.
Kenny Fisher

+Kenny Fisher

Kenny Fisher

Latest posts by Kenny Fisher (see all)

  • Kiwi rises as business confidence improves - 01/19/2021
  • Euro rises on strong eurozone data - 01/19/2021
  • Canadian dollar dips on mixed data - 01/18/2021
CAC, EUR, Eurozone Current Account, France CAC, France CAC 40, FX
Back to Top
Subscribe
Subscribe form
Week ahead
Week Ahead – Earnings season in focus
Posted by Craig Erlam Jan 15, 2021
FX
Kiwi rises as business confidence improves
Posted by Kenny Fisher Posted 1 hour ago
Euro rises on strong eurozone data
Posted by Kenny Fisher Posted 3 hours ago
US dollar edges lower in Asia
Posted by Jeffrey Halley Posted 5 hours ago
Indices
Equities climb on Yellen dovishness
Posted by Jeffrey Halley Posted 6 hours ago
Asian equity markets slide
Posted by Jeffrey Halley Jan 18, 2021
Stocks slide on mostly poor economic data and as banks start...
Posted by Ed Moya Jan 15, 2021
Commodities
Oil rebounds, gold higher, bitcoin’s competition
Posted by Ed Moya Posted 13 minutes ago
Oil flat, gold under pressure
Posted by Jeffrey Halley Posted 5 hours ago
Oil slips while gold ticks higher
Posted by Craig Erlam Jan 18, 2021
Crypto
Commodities, Cryptos, and FX: King dollar sends risky assets...
Posted by Ed Moya Jan 15, 2021
Oil pares gains, gold eases, bitcoin pulls back
Posted by Craig Erlam Jan 15, 2021
Oil pulls back, gold stable, bitcoin recovery
Posted by Craig Erlam Jan 13, 2021
Follow us
  • RSS
  • Facebook
  • Twitter
  • Google

Logotype

MarketPulse provides up-to-the-minute analysis on forex, commodities and indices from around the world.

  • OANDA Group
  • FX Data Services
  • Currency conversion
  • News events
  • Markets
  • Economic calendar
  • About MarketPulse
  • Terms of use
  • Site map
MarketPulse is an award-winning news site that delivers round-the-clock commentary on a wide range of asset classes, as well as in-depth insights into the major economic trends and events that impact the markets. The content produced on this site is for general information purposes only and should not be construed to be advice, invitation, inducement, offer, recommendation or solicitation for investment or disinvestment in any financial instrument. Opinions expressed herein are those of the authors and not necessarily those of OANDA or any of its affiliates, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, please access the RSS feed or contact us at info@marketpulse.com © 2020 OANDA Business Information & Services Inc.