Attention turns to the UK after the US posted record growth in retail sales overnight.

The EURUSD weakened overnight as the USD strengthened. The pair began the day at $1.13215 and edged up slowly, hitting highs of $1.13529 mid-session. Those high were not held for long as the euro fell sharply, bottoming out at $1.12270 late in the day. It has come off those lows and is now trading at $1.12696. The GBPUSD opened at $1.26033 and climbed in early trading, peaking at $1.26867 mid-session. It remained near those levels for several hours before giving up those gains late in the day, hitting lows of $1.25509. It is not far off those lows, currently trading at $1.25608.

Indices continued their strong start to the week, helped by some good economic data from the US. The Dow started the day at 25,862.77 and marched its way to a high of 26,799.97 mid-session. It fell dramatically off those highs, hitting lows of 25,793.35 just over two hours later. It bounced off those lows late in the day and is now trading at 26,336.00. The Dax once again followed the Dow’s lead however the gains were more subdued. The German index began the day at 12,211.78 and fell to lows of 12,132.55 early. It rebounded and rallied to a high of 12,439.54, which was achieved late in the session. It came off those highs and is now trading at 12,331.19.

Markets are set for another busy day as focus shifts to the UK as it publishes CPI data. Inflation in the UK is tipped to grow by 0.5% while Core CPI is forecast to hit 1.3%.

Other data released today includes:

Australia – CB Leading Index

UK – PPI Input & Output, RPI

Europe – Final CPI & Final Core CPI

Canada – CPI, Core, Common, Median and Trimmed CPIs

US – Building Permits, Housing Starts, Crude Oil Inventories, FOMC Member Loretta Mester speaks, Fed Chair Jerome Powell testifies

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.