mask Dollar edges up on upbeat US Data

18/ 04/ 2018

Dollar edges up on upbeat US Data

Daily Update - 18th April 2018

Yesterday’s Market

  • GBP Average Earnings excluding Bonus, ILO Unemployment Rate & Claimant Count Change
  • EUR ZEW Survey
  • USD Building Permits, Housing Starts, Industrial Production, Capacity Utilization & Speeches from FED members.

Yesterday Explained

Yesterday the greenback found support from economic indicators as the market focused on fundamentals as perceived political risks receded, with Western strikes on Syria not expected to escalate and a lull in major U.S.-China trade-related headlines.

It wasn’t quite the same for the Euro as it missed the opportunity to capitalize it’s gains over negative market surveys from Germany. Despite mixed numbers from UK on the Jobs reports it managed to hold some ground while the Euro was pushed further down.

Dollar kept on gaining positive momentum in the European session and further strengthened in the US session thanks to better than expected housing numbers. Better than expected industrial figures also pushed the dollar up as Greenback ended the day on high.

Today’s Market

  • GBP Retail Price Index, PPI and CPI
  • EUR CPI – Core & CPI
  • CAD BOC Interest Rate Decision and Pres Conference
  • USD Speeches from FED members

Today’s Focus

An important day for UK and the whole euro zone as we will see the release of Inflation figures. Early morning, we will see UK Releasing their Retail Price figures. Then it will be the release of PPI along with march inflation figures. Last month readings declined compared to previous month hence positive figures would be key for Pound to make a comeback. This will be followed by Euro Zone Inflation figures which will be scrutinized by investors for price movements.

The latter half belongs to Canada with the release of their rate decision and press conference. While the BOC is not expected to raise rates this time, expectations have risen for the central bank to tighten policy as early as next month in light of strong data, and participants will be looking for any hints that could reinforce such views.