American FX Outlook: Factory gate inflation foreruns the core inflation gauge in the US
|
What you need to know before markets open
- The US Dollar rally higher eased off a bit on Wednesday ahead of the US factory gate inflation and the consumer price inflation due on Thursday.
- The core US factory gate inflation is expected to decelerate slightly in April, with the key inflation data scheduled for Thursday with consumer price index due.
- The Reserve Bank of New Zealand is expected to hold rates unchanged with markets focused on alternations of rate outlook in the first policy statement under new governor Orr. For details read my Preview here.
Wednesday's upcoming market moving events
- The US core PPI is expected to rise 0.2% m/m in April while increasing 2.4% y/y.
- Canada’s building permits are seen rising 2.0% y/y in March.
- Atlanta Federal Reserve Bank President Raphael Bostic to speak at the World Affairs Council in Jacksonville, Florida at 17:15 GMT.
- The RBNZ is expected to keep the policy rate unchanged at 1.75% with the governor speaking at the press conference an hour after the rate decision. For details read my Preview here.
Major market themes
- The US Dollar eased off the highs as the geopolitical risks mount after the US President withdrawal from the nuclear deal with Iran, while Europe sides the current setup.
- The US benchmark Treasury yields rose over 3%.
- Watch NZD being boosted by possible changes in the outlook for the monetary policy as RBNZ meets. For details read my Preview here.
Earlier in Asia/Europe
- French industrial production rose 0.1% m/m in March after falling -0.5% m/m in February.
- Italian retail sales fell -0.2% y/y in March.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.