Giles Coghlan LLB, Lth, MA
Financial Source
Starting Tuesday, we're watching the Canadian CPI print closely. The Bank of Canada's recent minutes suggested hesitation about the last rate cut, hinting they might delay further cuts. This makes the upcoming inflation data crucial; stronger-than-expected inflation might push out expectations of a July rate cut, strengthening the CAD. Conversely, a significant miss could reinforce the likelihood of easing, providing a clear selling opportunity on the CAD.
Wednesday brings us to Australian CPI, a critical indicator for anticipating RBA's next moves. Given the RBA’s cautious stance recently highlighted by first-quarter inflation risks, this data could set the tone for market expectations regarding further rate hikes. A strong CPI print might bolster the AUD, particularly against the NZD, whereas a miss could ease concerns about immediate rate hikes.
As we progress through the week, Thursday seems quiet with US GDP and durable goods data unlikely to move markets significantly. However, all eyes will be on Friday for the US PCE print, the Fed's preferred inflation gauge. After the Fed's recent meeting signalling only one expected rate cut this year, a high PCE print could reinforce dollar strength and impact equity markets negatively.
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EUR/USD eases below 1.0300 ahead of ECB Minutes, US data
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GBP/USD holds losses around 1.2200 after dismal UK data
GBP/USD is battling 1.2200 in the European session on Thursday. The pair faces headwinds from disappointing UK GDP and industrial figures for November, increased bets of BoE rate cuts and a steady US Dollar. US Retail Sales and Jobless Claims data are next on tap.
Gold extends recovery on rate cut expectations
Gold’s price edges higher for the third day in a row and recovers initial weekly losses, rising above the $2,700 level at the time of writing on Thursday. The recovery comes in the run-up and release of the December US Consumer Price Index (CPI) data on Wednesday.
Algorand bulls aim for double-digit gains
Algorand price extends its gains, trading around $0.469 on Thursday after rallying more than 19% the previous day. The Algo insights report shows that ALGO’s RWA TVL increased 34.6% and 64.5% of the year’s follower growth on X.
Eurozone industrial production ticked up in November
The slight 0.2% rise in production from October is insufficient to indicate a reversal of the two-year downward trend. Overall, the outlook for industry remains quite weak at the start of the year.
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