Today's Highlights
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Australian Dollar hit a 4 month high
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Article 50 triggered on March 29th
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UK inflation data is main focus for today
Current Market Overview
The Australian Dollar's hit a four month high overnight but then lost momentum after strong housing data and the Reserve Bank of Australia (RBA) minutes. The RBA highlighted in the minutes the risks from the heat-up in housing markets.
In the UK, the Bank of England chief economist Andy Haldane said that low interest rates could have hurt productivity. He pointed out that the "total factor productivity" had its longest stagnation in history since the financial crisis. And low interest rates had kept unproductive businesses alive.
With regard to Brexit, Theresa May's spokesman James Slack said that Article 50 will be triggered next Wednesday on the 29th March. European Council President Donald Tusk has been informed of the plan. President Tusk has said he expects an initial response within 48 hours. Hopefully negotiations will start promptly.
In the USA, Chicago Fed President Charles Evans said the Fed is on track for two more rate hikes this year. Meanwhile, he maintained that a total of three hikes this year is entirely possible.
Elsewhere, UK inflation data will be the main focus in the European session. Headline CPI is expected to jump to 2.1% in February and core CPI is expected to rise to 1.7%. The Swiss will also release a trade balance. Later in US session, Canada will release their retail sales data while the US will release Q4 current account figures.
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.
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Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.