U.S. Review
Economic Spring Awakening
- Most economic indicators this week returned to positive growth after weakness earlier in the winter; however, the pace of that growth is still fairly low.
- Retail sales, producer prices, manufacturing production and housing starts all reversed prior negative trends this week.
- Headline industrial production fell due to mild weather reducing demand for utilities and ongoing weakness in the energy sector.
- Consumer prices accelerated slightly in March and the core CPI rose slightly on a year-over-year basis.
Global Review
China Downshifting; Eurozone Upshifting?
- This week, we were able to take a peek at China's continuous economic growth downshifting process, as the country reported that GDP grew 7.0 percent in Q1 2015 compared to the same period a year ago, down from a 7.3 percent increase in the last quarter of 2014.
- Meanwhile, growth in the Eurozone seems to be upshifting from the stagnant pace of the past several years. The most important news this week was the fact that industrial production in the Eurozone increased 1.1 percent in February and the largest contribution to this growth was not the country everybody was expecting: Germany.
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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.