Markets look ahead to US data

23 June, 2017

Markets look ahead to US data

Trading in USD was relatively flat on Friday ahead of economic indicators released next week in the US, which will provide further insight into the US economy – specifically inflation. Following last week’s FOMC decision to raise interest rates, the USD Index hit a 1 month high on Tuesday of 98.871. Since then trading has been in a narrow range as the markets await new US data to “analyse”. With US inflation data released next week the markets will be keen to see if the recent slump in crude oil has impacted the US inflation outlook.

US data releases next week will include; June consumer confidence indicator, pending home sales, crude oil inventories, revised first quarter GDP and the PCE price index. However, USD will likely react to wages & inflation data and moreso the July Non-Farm Payroll report in 2 weeks’ time. USD is set to post weekly gains of 0.4% against both USDJPY & EURUSD. USDJPY is trading around 111.25 below the 1 month high it set on Tuesday of 111.79. EURUSD is holding relatively steady around 1.1181.

Oil made small recoveries yesterday from 10 month lows, with WTI trading around $42.95 and Brent trading around $45.55 in early trading this morning. Therefore Commodity Currencies have benefited with USDCAD rallying 0.75% on Thursday and currently trading around 1.3220. CAD also benefitted from strong domestic retail sales which added to the markets expectations for an interest rate hike in July from the Bank of Canada.

GBPUSD was higher trading around 1.2735 as Kristin Forbes, Bank of England Policy Maker, stated “a “lift off” of UK interest rates should not be delayed any longer”. Such a statement is contrarian to comment made by Bank of England Governor Carney. This week GBPUSD experienced a sell off from Monday’s high of 1.2814 to a 2-month low set on Wednesday of 1.2589. Markets will be keen to hear the tone of speeches from FOMC members; Bullard, Mester and Powell today at 16:15 BST, 17:40 BST and 19:15 BST respectively.


Source link  
Consumer Price Index Takes Centre Stage

UK Budget Report will be released. This is a mini-budget and outlines the government’s updated budget for the fiscal year, including infrastructure...

US earnings hit sweet spot for markets

The US Nonfarm Payrolls data released on Friday showed a strong increase in job creation and, combined with the lower than expected increase...

Bank of Japan interest rate decision

The Bank of Japan Interest Rate Decision was as expected and left unchanged at -0.1%. The Japanese 10-Year JGB yield target is around zero percent...


Oil Gains and GBP Stumbles

On Tuesday, the American Petroleum Institute said crude stocks in the United States fell by 7.4 million barrels last week. That is almost twice...

Geo-Politics will be the focus of the week

This week will be dominated by Geo-Politics as the US Tax Bill needs to be reconciled between the Senate and House, whilst UK Prime Minister...

Positive Economic Data for Euro and UK

Data released on Thursday from Markit Economics showed eurozone’s thriving economy powered ahead in November, with new manufacturing orders...


UK Growth Forecast Lowered

UK Chancellor Phillip Hammond delivered an Autumn Budget that appeared to be somewhat neutral in its content. More sobering was the updated forecast...

Eurozone economy is robust but...

Speaking at the Frankfurt European Banking Congress, ECB President Mario Draghi, commented that although the eurozone economy was robust...

Trump: Jobs, jobs, jobs!

Data released on Friday showed US job growth accelerated in October after hurricane-related disruptions in the prior month, but a sharp retreat in average earnings and an increase...

  


Share: