Daily Update - 11th April 2017
Yesterday’s Market Yesterday’s explained In FED’s Yellen’s speech, she didn’t’ offer anything new regarding monetary policy and but said that the Fed’s still plan to raise interest rates gradually. She described the US economy in a “healthy” state and that the unemployment rate of 4.5% is a bit below full employment. Yellen expressed confidence in the housing market, domestic and global economy. However, she also said productivity growth has been very disappointing and GDP growth has been lackluster given high job growth. Her less hawkish comments made US Dollar drop against its rival currencies later in the day. Today’s Market Today’s Focus Europe will release their Industrial Production & Economic Sentiment for Germany. The Industrial Production shows the volume of production of Industries such as factories and manufacturing. Very important day for UK as they will release their Consumer Price Index, Producer Price Index & PPI Core Output. The Consumer Price Index is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. The Producer Price Index is a monthly measurement of the price changes of goods produced by UK manufacturers. Producer Prices Index Core Output, released by National Statistics, excludes volatile items such as food and energy. The Core PPI is generally a better measure of inflation because it excludes those items whose short-term price fluctuations can distort inflationary data. Later in the the day, US will release Their 10 Year Note Action. The yield on the notes represents the return an investor will receive by holding the bond until maturity. Investors monitor the yield volatility and compare the average rate at auction to the rate at previous auctions of the same security as an indicator of the government debt situation
