Arnaud Masset
Swissquote Bank Ltd
Markets are watching geopolitics closely, especially the China/US trade conflict. Meanwhile, the US Federal Reserve Bank has entered “wait-and-see” mode on monetary policy and will maintain as long as economic indicators stall. US headline inflation in January eased to 1.6% annually - compared to 1.9% in the previous month a forecast of 1.7% - amid a collapse in oil prices. Core inflation came in above forecast, printing at 2.2% compared to 2.1% expected. More data is coming this afternoon: publication of January’s producer prices, initial jobless claims, December’s retail sales and business inventories. On Friday come industrial production, Michigan sentiment index, Empire Manufacturing and most importantly durable goods orders for the month of December as well as purchasing manager indicators.
The US dollar bounced back at the European opening, especially against the Australian and New Zealand dollar. Over the last days, the greenback has traded with an upward bias, remaining insensitive to economic data. Trade negotiations between the US and China are still the main driver in FX.
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This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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