Market Insights 180423
?The EUR/USD pair dipped to a low of 1.0909 from a high of 1.1000 yesterday on the back of a recovering USD. ECB President Lagarde said that there is no reason for the ECB to change the 2% inflation target but added that once inflation reaches this target, the central bank will then discuss about changing its inflation benchmark.?Today, the ZEW survey will depict the current situation and economic sentiment for Germany as well as the economic sentiment in the Eurozone. Other data include trade balance for both Italy and the Eurozone.
In the context of the recent G7 summit, the world's 7 wealthiest nations in terms of GDP have portrayed a strong unity as they criticised China’s added pressure on Taiwan and Russia’s threat of nuclear weapons, stating that any use of chemical, biological or nuclear weapons in Ukraine would be met with severe consequences.?Earlier today, data revealed that the Chinese economy grew to 4.5% on an annualised basis in Q1 and retail sales surged 10.6% yearly in March. In the US, gold prices have subsided over expectations that the Fed will hike rate in May which pushed the US dollar up and the XAU/USD dipped below 2,000 USD and it is currently trading at 1,999.09. Yesterday, the New York Empire State manufacturing index appreciated by 10.8 points which was broadly read by the market as a sign that the US economy can sustain more hikes in the Fed's battle against high inflation. Fed board governor Michelle Bowman will be speaking about the Central Bank Digital Currency. Data due today include building permits, housing starts and the Redbook index. The greenback is gaining traction and it is currently trading at 102.00 against similar peers.
Other interesting data include CPI data for Canada and the Bank of Canada’s governor Macklem’s testimony the Canadian parliament’s standing committee on Finance; and the UK quarterly unemployment rate as well as quarterly average earnings.??
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