Can Sterling build on positivity?

18th April 2019 Off By binary

GBP
UK employment data largely met forecasts; unemployment remained at 3.9%, it’s lowest level since 1975 and average weekly earnings, after adjusting for inflation, rose 1.6% compared to last year. Sterling was range-bound between 1.3000 and 1.3100. The absence of negative Brexit news and support from data front seemed to have played their roles. Investors await the latest UK inflation numbers and forecasts see an acceleration in March. Although the data will have limited immediate impact on interest rate expectations the accumulation of upbeat data amid the Brexit hiatus could trigger an upside move. Missing consensus could trigger a position adjustment and risk-averse moves ahead of the Holiday period.

USD

The greenback is trading relatively flat against its major peers. The currency market is adopting a cautious approach and is struggling for clear direction. Volatility is said to stretch a notch higher with a slew of data out of China later today which will affect the USD. Q1 GDP, industrial output and retail sales report cards will provide enough substantial clues on the direction of the global economy.

Today, Trade Balance figures during February are due seconded by Wholesale Inventories and the weekly report on the US crude oil supplies by the EIA. In addition, Philly Federal reserve P.Harker will speak on the Economic Outlook and St.Louis Fed J.Bullard will speak at Hyman Minsky event.

EUR

ZEW’s Indicator of Economic Sentiment for Germany moved into positive territory as the economy attempts to make a slow recovery. The survey, however still points to an uncertain outlook in the coming six months. EURUSD remains within the recent consolidation range around the 1.1300 handle.

Data to watch

02:00 CNY Gross Domestic Product (QoQ) (Q1)
02:00 CNY Gross Domestic Product (YoY) (Q1)
02:00 CNY NBS Press Conference
02:00 CNY Industrial Production (YoY) (Mar)
02:00 CNY Retail Sales (YoY) (Mar)
04:30 JPY Industrial Production (YoY) (Feb)
08:30 GBP Retail Price Index (YoY) (Mar)
08:30 GBP Retail Price Index (MoM) (Mar)
08:30 GBP PPI Core Output (YoY) n.s.a (Mar)
08:30 GBP Producer Price Index – Input (YoY) n.s.a (Mar)
08:30 GBP Consumer Price Index (YoY) (Mar)
08:30 GBP Core Consumer Price Index (YoY) (Mar)
08:30 GBP Consumer Price Index (MoM) (Mar)
09:00 EUR Consumer Price Index – Core (MoM) (Mar)
09:00 EUR Consumer Price Index – Core (YoY) (Mar)
09:00 EUR Consumer Price Index (MoM) (Mar)
09:00 EUR Consumer Price Index (YoY) (Mar)
12:30 USD Trade Balance (Feb)
12:30 CAD Consumer Price Index (YoY) (Mar)
12:30 CAD Consumer Price Index – Core (MoM) (Mar)
12:30 CAD BoC Consumer Price Index Core (MoM) (Mar)
12:30 CAD BoC Consumer Price Index Core (YoY) (Mar)
12:30 CAD CAD Consumer Price Index (MoM) (Mar)
13:00 GBP BoE’s Governor Carney speech
14:30 EUR ECB’s Lautenschlager speech
16:45 USD Fed’s Bullard speech
18:00 USD Fed’s Beige Book
23:50 JPY Foreign Investment in Japan Stocks (Apr 12) 

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