Data events from overnight: US data releases solid, uk labour strong - ANZ

Ross J Burland FXStreet

Analysts at ANZ explained the data events overnight for the US and European trade.

Key Quotes:

"US data releases were solid, implying the economy is accelerating in the early stages of Q2. Retail sales rose in line with expectations but with upward revisions; Empire Manufacturing rose sharply with prices paid the strongest since 2011; the NAHB index reversed the modest declines of recent months. The Atlanta Fed GDPNow index is indicating growth of 4.0%+ for the current quarter based on available published data. Average hourly earnings data in the May labour market report will be keenly awaited given strong growth and unemployment at cycle lows of 3.9%."

"UK labour market data were strong. The economy created 197k jobs in Q1, and average earnings rose (2.9% y/y vs 2.8%). With labour market growth that strong, the Q1 GDP data (0.1% q/q) looks increasingly out of whack. Elsewhere in Europe, euro area industrial production bounced 0.5% after falling 0.9% in February, and German ZEW current conditions beat forecast."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD holds above 1.1800 after Eurozone inflation figures

EUR/USD remains within a tight daily range above 1.1800 on Wednesday after the data from the Eurozone showed that the annual HICP inflation softened to 1.7% in January as expected. Private sector employment and ISM Services PMI data could ramp up the pair's volatility in the second half of the day.

GBP/USD stays bid above 1.3700, awaits top-tier US data

GBP/USD sticks to gains above 1.3700 in European trading on Wednesday. The pair takes advantage of a pause in the US Dollar rally, even as markets turn cautious ahead of the US ADP jobs report and the ISM Services PMI data. The BoE's 'Super Thursday is keenly awaited.

Gold sticks to bullish bias; eyes $5,100 as safe-haven demand persists ahead of US data

Gold advances to a fresh weekly high during the first half of the European session on Wednesday, with bulls now looking to reclaim the $5,100 mark amid a supportive fundamental backdrop. Concerns over rising tensions between the US and Iran resurfaced following overnight reports that the US shot down an Iranian drone in the Arabian Sea.

ADP Employment Report set to show modest hiring extended into January

The Automatic Data Processing Research Institute will release its monthly report on private-sector job creation for January on Wednesday. The so-called ADP Employment Change report is expected to show that the United States economy added 48K new jobs, following the 41K new payrolls witnessed in December.

Should investors abandon AI as software stocks slide?

AI is not being abandoned by markets. It is being priced more carefully. Over the past few weeks, the underperformance of software and SaaS stocks has sparked a familiar question: is the AI trade breaking down? The answer is no.

Solana Price Forecast: SOL drops below $100 as bears tighten grip

Solana (SOL) trades below $100 at press time on Wednesday, after taking a more than 6% hit the previous day as the broader cryptocurrency market slipped. Institutional and retail demand for Solana continues to decline, while on-chain data shows a record 150 million daily transactions on Tuesday.