U.S. Review
U.S. Manufacturers Facing Headwinds
- U.S. manufacturers were already struggling with a stronger U.S. dollar when the currency appreciated further against the euro and Canadian dollar as central bankers in those regions made unexpected moves. The negative effects of oil are also starting to show up in regional manufacturing surveys.
- Housing starts improved in December with upward revisions to the prior month. Unfortunately, permits look a bit weaker, suggesting starts could see some payback in the coming months. Homebuilder sentiment did not add much optimism to the housing market recovery.
Global Review
Slow Growth in China and Central Banks Step Up Easing
- At the start of this week, the IMF downgraded its forecast for global growth citing among other things "a reassessment of prospects in China" and it cautioned advanced economies that "monetary policy must stay accommodative."
- The year-over-year rate of Chinese GDP growth released this week was a shade stronger than the consensus expected, but the sequential growth rate shows that growth is slowing.
- The European Central Bank embarked on an ambitious quantitative easing program and the Bank of Canada surprised financial markets with an unexpected rate cut.
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Editors’ Picks
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Bitcoin price extends retreat from $69K as old whales shift their holdings to new whales
Bitcoin price continues to move further away from the $69,000 threshold, gaining ground as BTC bulls hope for a retest of the $73,777 peak. This is because of the general assumption that clearing this blockade would set the tone for a reach higher, marking a new all-time high.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.