What you need to know before markets open
- The Upper Chamber of Japan’s parliament confirmed appointments of Haruhiko Kuroda as the Governor and Masayoshi Amamiya and Masazumi Wakatabe as Deputy Governors of the Bank of Japan.
- The summit of Asian nations ASEAN and Australia rejects the US-led protectionist policies and says it is committed to free trade.
- According to media reports US President Trump has decided to remove his national security adviser Herbert Raymond McMaster.
- The Eurozone final inflation reading is scheduled for European morning session, with figures belittled by ECB President Mario Draghi speech this Tuesday in which he pointed out that inflation is currently way off the target to imply any kind of monetary policy consideration. For detail read my Preview here.
Friday’s market moving events
- German wholesale prices are seen rising 0.2% m/m while decelerating to 1.54% y/y in February.
- The Eurozone labor cost index is seen rising 1.8% y/y in Q4 2017.
- The Eurozone inflation is expected to rise 0.2% m/m while increasing by 1.2% y/y in February, unchanged from the previous month. The core inflation is expected to rise 1.0% in February. With inflation well below ECB’s target, no major market moves are expected. For detail read my Preview here.
- The US housing starts are seen decelerating to 1.28million while building permits are seen falling to 1.32 million in February.
- The Canadian manufacturing sales are seen falling -0.8% m/m in January.
- The US industrial production is expected to rise 0.3% m/m in February.
Major market movers
- The US Dollar recovered further on Thursday breaking below 1.2300 level against Euro while inching to 1.3900 against Sterling.
- The FX market is getting ready for next week’s FOMC meeting with the first rate hike under command of Jerome Powell being a sure shot for markets, so the statement and the dot-plot are likely to take the center-stage.
Thursday’s macro summary
- French inflation in February remained unchanged after falling -0.1% m/m in January. Over the year, French inflation rose 1.2%.
- Swiss National Bank kept the monetary policy unchanged with Interest on sight deposits at the SNB is to remain at –0.75% and the target range for the three-month Libor unchanged at between –1.25% and –0.25%.
- The Empire State manufacturing index rose to the robust level of 22.5 in March.
- The US initial jobless claims reached 226 K in a week ending March 9, meeting the expectations.
- The Philadelphia Fed manufacturing index decelerated to 22.3 in March.
- The ADP employment survey for Canada rose by 32.7K in February, exceeding market expectations of 10K increase.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD stays near 1.0800 after upbeat US data
EUR/USD stays under modest bearish pressure and trades near 1.0800 in the American session on Thursday. The data from the US showed that the real GDP growth for the fourth quarter got revised higher to 3.4% from 3.2%, supporting the USD and weighing on the pair.
GBP/USD stays in daily range above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth helps the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays above 4.2% after upbeat US data and makes it difficult for XAU/USD to preserve its bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.