The UK calendar was quiet yesterday bar a RICS housing release which showed that there has been a marked increase in the cost of property. The news, however, wasn’t considered to be of a lot of importance and so didn’t have much impact on GBP strength.
Today will be similarly quiet, with the only data to note being construction output.
On the mainland, Greece provided more drama yesterday when strikes there turned violent. We also see ECB chief, Mario Draghi, say that QE may be extended while deposit rates could be slashed. Core inflation seems to be of concern as it’s been seen to stall.
This morning we have already seen both France and Germany release Q3 growth data – both at 0.3%.For the French, the figure has been something of an improvement from Q2, although for Germany the number reveals a slight slowdown. We’ll shortly see GDP data for the Eurozone as a whole released.
As with the UK, the US only had one real data release of note yesterday which was initial jobless data. While 270,000 had been expected, the figure came in at 276,000 which was worse than wanted and had bit of a knock on USD strength. While we did see a number of Fed members speak yesterday, nothing concrete (as usual) was mentioned about a rate hike so for now it’s just more speculation about when that might happen.
Today will be a bit more exciting for the US data calendar as we see the release of retail sales for last month. With that being a good indicator of economic health, we can expect the result to have some bearing on USD performance.
FC Exchange is a trading name of Foreign Currency Exchange Limited. Registered office: Salisbury House, Finsbury Circus, London, EC2M 5QQ. Registered No.5452483. Authorised by the Financial Conduct Authority (No.511266) under the Payment Service Regulations 2009 for the provision of payment services. HM Revenue & Customs MLR No.12215508. Copyright © 2013 Foreign Currency Exchange. All Rights Reserved.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.