American FX Outlook: US consumer sentiment headlines
|What you need to know before markets open
- ECB's Draghi pulled the plug on the QE program yesterday, still, the EUR dropped more than 200 pips as the central bank head pushed out the first rate hike to end 2019.
- The Bank of Japan left the policy instruments unchanged as widely expected.
- German inflation is on the rise with the wholesale prices picking up strongly in May.
- The Eurozone inflation confirmed the preliminary estimate of near ECB’s target rate of 2% with Austrian central bank Governor Nowotny saying the ECB is fine with current inflation.
- The US consumer sentiment headlines the US session.
Friday's upcoming market moving events
- The US Empire State manufacturing index is expected to reach 19.0 in June, down from 20.1 in May.
- Canada’s manufacturing sales are expected to rise 0.6% m/m in April.
- The US industrial production is exp[ected to rise 0.2% in May.
- The US Michigan consumer confidence is set to rise to 98.5 in June.
Major market themes
- The EUR and GBP recovered slightly from 200 pips fallout against the US Dollar on Thursday on the end of the week profit-taking.
- The Euro recovered from mid 1.1500s to above 1.1600 after the ECB governing council member Nowotny said the Bank should seize possibility of monetary policy normalization soon as it is technically possible.
- Watch EUR/USD factoring in the US consumer confidence data. For details of how to trade US consumer confidence with EUR/USD read Yohay’s analysis.
Earlier in Asia/Europe
- The Bank of Japan left the monetary policy unchanged in June with one Monetary Policy Committee member dissenting the decision.
- German wholesale prices rose 0.8% m/m in May while increasing 2.9% y/y.
- The Eurozone inflation confirmed the preliminary estimate of 1.9% y/y increase while core inflation rose 1.1% y/y.
- ECB's governing council member Ewald Nowotny said inflation is in line with ECB target and the Bank is beginning policy normalization without setting off taper tantrum in markets.
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.