Data from China in focus

March 31, 2020

In amongst all the talk of coronavirus and government stimulus packages, there’s still some economic data being released.

The USD is starting to strengthen again, sending paired currencies down overnight. The EURUSD opened the week at $1.11156 and nudged up to a high of$1.11441 early in the day. The losses started shortly afterwards, with the euro falling to a low of $1.10087 heading into late-session trading. It is not far from those lows and is now trading at $1.10195. The GBPUSD opened at $1.24157 and ticked up to a high of $1.24649 early in the day. It fell throughout the morning session, hitting lows of $1.23151 mid-session. It regained most of those losses late in the day but has fallen again in early Tuesday trading. The pound is now at $1.23246.

Despite opening almost 500 points lower than Friday’s close, the Dow powered its way to gains of more than 1,300 points. The index opened the week at 21,087.29 and slipped to a low of 21,021.17 in the first hour of the day. The Dow quickly bounced off those lows and surged up for most of the day, peaking at 22,379.64 late in the day. It has since climbed further in Tuesday trading and is now trading at 22,450.50. The Dax followed the Dow’s lead, posting a strong start to the week. The German index began Monday at 9,447.21 and rallied in early trading to 9,797.76 before a sharp sell-off saw it fall to lows of 9,427.54. However, it bounced back and rallied again, this time hitting highs of 9,863.70. it is now trading at 9.923.30.

The day ahead sees the publication of plenty of data, with most interest surrounding the PMI data from China. China is expecting their Manufacturing and Non-manufacturing PMIs to come in a lot stronger than forecast. This would be remarkable for a country that was the epicentre of the virus outbreak which caused widespread shutdowns.

Other data published today includes:

Japan – Housing Starts

Canada – GDP, IPPI, RMPI

UK – Current Account, Final GDP, Revised Business Investment

US – CB Consumer Confidence, Chicago PMI, S&P/CS Composite-20 HPI

Europe – German Import Prices & Unemployment Change, Swiss Retail Sales, French Consumer Spending & Prelim CPI, Italian Prelim CPI, European CPI & Core CPI Flash Estimates


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