The UK looks to be ending the week on a downer as we saw the release of poor retail data yesterday that showed a drop-off last month to -0.6%. With retail numbers surging in September due, in part, to the Rugby world Cup, a drop for last month is to be somewhat expected, but there was also a drop in food sales seen as well – in fact, this is the biggest drop we’ve seen for the segment since May last year. There was also a drop in yearly retail numbers seen; from 3.8% to 4.2%. Whilst this all contributed to a poor start to the day, once things settled in GDP was able to regain some lost pride. In terms of data today, there isn’t much else out aside from September’s public net borrowing.
EUR was seen to make some gains against its competitors yesterday, hitting 1.0763 against USD, but this was followed by an MPC meeting where it was mentioned that the risk had increased that the Eurozone is going to miss its inflation target. It’s now down to what Draghi will say about policy and whether or not QE will be amended – he’ll be speaking today so it may be a chance for him to drop more clues about how/when more QE is brought into effect. There won’t be much data of interest today aside from consumer confidence numbers – anticipated to come in at -7.5 by comparison to last month’s -7.7.
Despite a drop in value for USD yesterday, there was some decent data out that showed how there has been a fall in number of people filing for jobless benefits to 271,000, and Philly Fed showed in increase in the manufacturing index to 1.9 which is up from -4.5 last month. It seems now that a rate hike is being priced into the market by pundits – although there is, of course, no guarantee. There won’t be much data of importance out today – we will see Fed members Dudley and Bullard speak, however, later today.
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 regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.