US in focus

March 27, 2018

A much busier day today than yesterday as far as data announcements go.

The EUR/USD ticked up overnight as the USD showed further signs of weakness. The pair hit session lows of $1.23508 early before climbing to a peak of $1.24612 in late trading. It has come off those highs, trading at $1.24470. It was a similar story for the GBP/USD as opened the session at lows of $1.41282. It also rallied during the USD weakness, hitting highs of $1.42444. It is slightly off those highs, trading at $1.24309.

The Dow finally put in a solid performance overnight, rallying almost 700 points from lows of 23,556.56 to a high of 24,224.25. It has started the session up, currently trading at 24,239.70. The Dax ended its session close to where it opened, but still experienced some volatility in between. It peaked at 11,984.97 before dropping to session lows of 11,723.72, as it continues to be affected by the Dow. It did rebound, closing the session at 11,921.22

Looking at the day ahead and the most significant data set for release is the US CB Consumer Confidence. This denotes people’s confidence in the economy and is important for markets as confident consumers tend to spend more money. It is important to take note of what is happening away from data in the world and front and centre of this is the possible trade war between the US and other countries. Many have put the Dow’s under-performance down to tariff talk. Now there seems to be a possibility of some negotiation with the US, so that has given markets some confidence. Other data set for release today includes:

Japan – SPPI, BoJ Core CPI

Australia – HIA New Home Sales, RBA Assistant Governor Christopher Kent speaks

UK – FPC Meeting Minutes

Europe – M3 Money Supply, Private Loans, German Import Prices

US – S&P/CS Composite HPI, Richmond Manufacturing Index, FOMC Raphael Bostic speaks


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