Markets gear up for more US data

January 16, 2020

Markets continue to look at the US as it publishes important economic data.

The EURUSD made some small gains overnight after opening the day at $1.11270. The pair fell to lows of $1.11176 mid-session before rebounding and climbing to a high of $1.11629 late in the day. It has come off those highs and is now trading at $1.11505. The GBPUSD made small gains yesterday after beginning the day at $1.30174. The pound remained steady early, creeping up to a high of $1.30417 before falling to lows of $1.29836 mid-session. It bounced off those lows and reclaimed most of the earlier losses, ending the session at $1.30375. It has opened higher in Thursday trading at is currently at $1.30486.

The US-China trade deal sent the Dow into record territory once again. The index began the day at 28,962.07 and fell to lows of 28,876.33 early. The Dow stayed near those lows for a few hours but then rallied around the time that the trade deal was signed. It peaked at 29,128.52 late in the day and closed at 29,072.00. The rallying Dow had no impact on the Dax, which ended the session slightly lower. The German index opened at 13,448.89 and dipped early before climbing to highs of 13,466.03 mid-session. It hovered near those highs for a few hours before falling away late, closing at 13,411.05.

With the trade seal signed and out of the way, markets can go back to concentrating on economic data. The early hours of tomorrow morning sees the release of Retail & Core Retail Sales data from the US. It is expected that the Retail Sales figure will show a growth of 0.3% (up from 0.2%), while the Core Retail number is forecast to show growth of 0.5% (up from 0.1% at the last reading).

Other data published today includes:

Japan – PPI, Core Machinery Orders

Canada – ADP Non-Farm Employment Change

UK – RICS House Prices, BoE Credit Conditions Survey

Europe – German Final CPI, ECB Monetary Policy Meeting Minutes, ECB President Christine Legarde speaks

US – Philly Fed Manufacturing Index, Import Prices, Business Inventories, NAHB Housing Market Index, Natural gas Storage, TIC Long-Term Purchases, FOMC Member Michelle Bowman speaks


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