Markets eye US activity

April 11, 2018

Plenty of market activity from around the world has the potential to cause some volatility.

The USD weakened overnight which meant other currencies were able to add some value. The EUR/USD started the session flat but took off midway through the session. After hitting lows of $1.23018, it built steadily and then took off from $1.23195 to a high of $1.23774 in the space of an hour. It pared back some of those gains, but still remains near those highs, trading at $1.23613. The GBP/USD followed a similar path as the euro. The pair hit lows of $1.41193 early, it began a steady climb until it peaked at $1.41873. It ebbed and flowed from that point, but still managed to hold onto most of those gains, currently trading at $1.41815.

The Dow had a solid outing throughout the trading session. It began the session at lows of 23,982.66. It then proceeded to pile on the points as China appeared to soften its tariff stance. The Dow reached a high of 24,514.84. It showed some volatility after that, but managed to keep most of those gains. It is currently trading at 24,375.80. The Dax remained largely flat, closing near where it opened. It opened at 12,383.89 and hit highs of 12,428.20 a short time later. It pulled back from those highs to eventually reach session lows of 12,331.50. However, it was able to regain some of those losses to close at 12,379.70.

The day ahead looks like a busy one for markets, with most interest surrounding events in the US. The US is releasing crucial CPI & Core CPI data. These figures are important as it indicates the strength of consumer demand for products and services within the economy. This demand is vital for economic growth. The US Fed Reserve is also releasing its Meeting Minutes from its last interest rate meeting. This will be significant as it gives markets a more detailed insight into the economy and monetary policy outlook from the view of policymakers. Other data set for release today includes:

China – CPI, PPI

Australia – RBA Governor Philip Lowe speaks

NZ – RBNZ Assistant Governor John McDermott speaks

Europe – Italian Retail Sales, ECB President Mario Draghi speaks

US – Federal Budget Balance, Crude Oil Inventories

UK – Manufacturing Production, Goods Trade Balance, Construction Output, Industrial Production, NIESR GDP Estimate, RICS House Price Balance

 

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