16/10/2017 - Sebastian Kurz On Track To Become Austrian Leader

EUR

The election results from Sunday’s elections in Austria show that, for the continent’s mainstream parties, the threat from the right is far from vanquished two years on from the migration crisis. 

The leader of Austria's right-leaning People's Party Sebastian Kurz has declared victory in a national election that puts him on track to become the world's youngest leader after he embraced Hardline immigration policies from freedom party.

Kurz fell well short of a majority and has not ruled out the possibility of forming an alliance with the anti-immigration Freedom Party.

The young leader, dubbed Wunderwuzzi in his home country, which translates to Wonderkid, has pledged to cut benefits for all foreigners in Austria and has vowed to stop the European Union meddling in the country's politics. 

USD

The Dollar struggled on Friday afternoon after inflation figures missed expectations. The Labour Department said the consumer price index (CPI) rose 0.5 per cent last month against an expectation of a 0.6 per cent rise as gasoline prices jumped 13.1 per cent.

Official figures showed US consumer prices rose the most in eight months in September due to a rise in gasoline prices following hurricane disruptions in the Gulf Coast.

Analysts later speculated that concerns of depressed inflation could cloud the prospect of higher US interest rates in 2018.

The commerce department also revealed retail sales in the US jumped last month by the most in more than two years as motor vehicles lost to hurricanes were quickly replaced and higher prices lifted receipts at gasoline stations.

Industry figures released last week showed cars and light trucks sold in September at the fastest annualized rate since 2005.

GBP

Yesterday Chancellor of the Exchequer Philip Hammond faced mounting questions over his future weeks ahead of a budget announcement, finding himself at the centre of an increasingly fraught debate over Britain's departure from the European Union. 

Reports from the EU last week declared a "disturbing deadlock" in talks with Prime Minister Theresa May's government on arrangements to leave the bloc, raising the chances of Britain quitting without a negotiated deal and increasing criticism of the government's handling of Brexit. 

On Sunday newspapers reported a source from the Democratic Unionist Party (DUP) said May must warn Hammond he faces the sack unless he changes his approach to Brexit, the Sunday Telegraph reported. 

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