U.S. Review
Economic Spring Awakening
- Most economic indicators this week returned to positive growth after weakness earlier in the winter; however, the pace of that growth is still fairly low.
- Retail sales, producer prices, manufacturing production and housing starts all reversed prior negative trends this week.
- Headline industrial production fell due to mild weather reducing demand for utilities and ongoing weakness in the energy sector.
- Consumer prices accelerated slightly in March and the core CPI rose slightly on a year-over-year basis.
Global Review
China Downshifting; Eurozone Upshifting?
- This week, we were able to take a peek at China's continuous economic growth downshifting process, as the country reported that GDP grew 7.0 percent in Q1 2015 compared to the same period a year ago, down from a 7.3 percent increase in the last quarter of 2014.
- Meanwhile, growth in the Eurozone seems to be upshifting from the stagnant pace of the past several years. The most important news this week was the fact that industrial production in the Eurozone increased 1.1 percent in February and the largest contribution to this growth was not the country everybody was expecting: Germany.
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Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.