US data in focus
A relatively quiet Wednesday as far as data goes, but there is still some significant data being released.
The USD strengthened overnight, while Brexit worries weighed on both the euro and pound. The EUR/USD opened the session at $1.13535 and climbed steadily through early trading, peaking at $1.13998 mid-session. The slide began soon after that peak, with the euro tumbling to a low of $1.13051 a few hours later. It is not far off those lows as it is currently trading at $1.13176. The GBP/USD suffered a similar fate as the pound gets belted over Brexit uncertainty. The pair opened at $1.25527 and climbed throughout the first half of the day, hitting a high of $1.26375 mid-session. The rot set in after that as the pound fell to a final hour low of $1.24777. It is currently trading at $1.24833.
The Dow looked set for a great session, but was then weighed down by talk of a government shutdown over a spending bill. The index opened at 24,464.13 and remained flat early. Mid-session trading saw the Dow climb to a high of 24,802.60 before it performed a 180 degree turn in late trading to bottom-out at 24,212.20. The Dow closed at 24,311.20. The Dax finally bucked the trend of the Dow, closing higher overnight. The German index opened at 10,722.61 and hit an early low of 10,684.10. The Dax rallied off that low, peaking at 10,885.10 in late trading. It came off those highs and closed at 10,791.60.
The day ahead sees the release of some significant data from the US. The US is publishing CPI & Core CPI data. This figure is a reflection of inflation within the economy and is a figure that the Fed Reserve uses to help it decide monetary policy settings for the nation. Other data set for release include:
NZ – FPI
Australia – Westpac Consumer Sentiment
Canada – Capacity Utilisation Rate
US – Crude Oil Inventories, Federal Budget Balance
Europe – Industrial Production, Italian Quarterly Unemployment
Japan – Core Machinery Orders, PPI, Tertiary Industry Activity
Disclaimer: The information in this website is of a general nature only and the advice has been prepared without taking account of your objectives, financial situation or needs. Accordingly, before acting on the advice, you should consider the appropriateness of the advice having regard to your objectives, financial situation and needs. We recommend you seek independent advice if necessary.