Following the hurricanes across the US last month the data still appears to be considerably below previous levels. New building permits numbers were down 4.7% for the month of September along with the amount of new Housing Starts being down a similar figure.
One of the only positives to come from an economic perspective following the hurricane is the amount of oil in storage. There had been an enormous oversupply which has kept the oil price low over the last year, however due to the hurricanes halting production in the south of the United States, those stocks have been dipped into on a big scale. Clearing the stockpile could certainly drive the price of oil up which generates more revenue and profit.
The next Head of the Federal Reserve
Janet Yellen’s term is coming to a close as Federal Reserve Chairlady and the decision to appoint her successor begins. Mrs Yellen could be re-appointed however Trump in the run-up to his election was quite vocal he was not a fan of her dovish stance and wanted more action.
President Trump will get to put his candidate forward but they will come from the current sitting Governors. Therefore there is only a select few people who can be appointed but a lot of them have different beliefs on how the country should be run. Donald Trump is likely to hold significant influence so his vote should be considered favourite, but the candidate needs to be approved by the Senate which could prove trickier.
What this does mean is that US Dollar volatility could be just on the horizon. Janet Yellen was quite contained and has set out a clear path. If the next leader has a completely different way of thinking then investors may have to prepare for change, causing knee jerk reactions which could rock markets.