USD Gets Hammered, with Stats Bringing the EUR and GBP into Focus

Daily Update - 24th January 2018

Yesterday’s Focus

• JPY BoJ Interest Rate Decision, BoJ Monetary Policy Statement & BoJ Press Conference
• USD EUR ZEW Survey - Economic Sentiment & Consumer Confidence

Yesterday’s Explained

Early morning yesterday, The Bank of Japan has left its monetary policy unchanged as expected but was slightly upbeat on its inflation outlook. Governor Kuroda, however, remarked that maintaining the strong easing is still necessary and that is no time of thinking about trimming QE. Furthermore, he added that prices are still weak and that the variations on monthly bond-purchases are a matter of market's conditions rather than anything else.

Later in the day, from Europe, The Eurozone consumer’s sentiment index rose to 1.3 in January and is now eyeing up its all-time record in late 2000. Elsewhere Germany’s ZEW survey came in at an eight-month high. And also positive politics in Germany, cheery investors and bullish consumers in the EZ along with lower yields and higher treasuries in the US on the back of the temporary government funding in until 8th Feb all propped up the single currency. 

Today's Focus

•             EUR Markit Services PMI & Markit PMI Composite

•             EUR Germany, Markit PMI Composite, Markit Services PMI & Markit Manufacturing PMI

•             GBP Claimant Count Rate, Average Earnings including Bonus, ILO Unemployment Rate

•             USD Housing Price Index, Markit Manufacturing PMI & Markit Services PMI

Today's Market

On Wednesday, from Europe, Germany and France will put forward their results for Markit Services PMI & Markit PMI Composite respective for their countries. Markit Services PMI evaluate the economic situation in the Euro Zone services sector as a whole. It captures an overview of the condition of sales and employment.

Then from UK, Claimant Count Rate will be released which indicate the monthly measure of unemployment in the UK. It indicates the health of the UK labor market. This will be followed by The Average Earing Including Bonus which is a key short-term indicator of how levels of pay are changing within the UK economy. And then The ILO Unemployment Rate which is the number of unemployed workers divided by the total civilian labor force. It is a leading indicator for the UK Economy.

Later in the day, from US, housing price index provides an estimated value of housing market conditions. It is an important indicator as the housing market is considered as a sensitive factor to the US economy. This is followed by The Manufacturing Purchasing Managers Index which captures business conditions in the manufacturing sector. The the focus shifts to Market service PMI which captures business conditions in the services sector.