Europe in focus as dollar strengthens
Another busy day and night for markets, with plenty of data set for release from around the world, with most of it emanating from Europe.
The Euro pulled back off its highs of $1.206 overnight to its current level of $1.188 as the US released some strong data beats. The ADP Non-Farm figure came in at 237k, easily beating analysts’ expectations of 185k. The US GDP figure has posted a big beat – 3% vs 2.7% expected. This all culminated in a strengthening of the USD against other major currencies, including the Euro.
Most of the indexes from around the world finish with modest gains as they clawed back losses from the previous day, with average gains of around half a percent. Announcements later today may well cause some shift in markets, although nothing critical is slated for release.
The announcements for today and the early hours of tomorrow morning include:
Europe – German Retail Sales & Unemployment Change, French Prelim CPI, Italian Prelim CPI & Monthly Unemployment Rate, European CPI, Core CPI & Unemployment Rate
China – Manufacturing & Non-Manufacturing PMIs
Australia – Private Capital Expenditure & Private Sector Credit
Japan – Housing Starts
New Zealand – ANZ Business Confidence
Canada – GDP
US – Challenger Job Cuts, Unemployment Claims, Core PCE Price Index, Personal Spending, Personal Income, Chicago PMI, Pending Home Sales & Natural Gas Storage
Finally, UK MPC Member, Michael Saunders, is due to speak.