Inflation is on the rise in the US and some suspect a rate hike is coming. Perhaps not so fast. Here is their view, courtesy of eFXdata: “By the magic of seasonal adjustment and methodology revisions, US CPI managed to be both a bit hotter and a bit cooler than expectations at the same time. … “USD: US CPI: Nothing In It To Sway The Fed From Doing ‘Nothing’ For Now – CIBC”
Author: admin_mm
US Dollar Weakens on Retail Sales Plunge, Jobless Claims Jump
The US dollar is weakening against a basket of currencies on Thursday as new data is souring economic outlooks. Retail, inflation, and even jobs impacted the greenback towards the end of the trading week, leaving investors concerned that a contraction is on the horizon. According to the US Census Bureau, retail sales tumbled 1.2% in December, recording their biggest decline in nine years. The market had expected the data to be flat. The declines were seen … “US Dollar Weakens on Retail Sales Plunge, Jobless Claims Jump”
Loonie Tumbles After Surprising Drop of Manufacturing Sales
The Canadian dollar declined against all other most-traded currencies today as poor macroeconomic data in Canada and the United States weighed on the loonie. The Canadian currency has trimmed its losses by now but still remained far below the opening level. Statistics Canada reported that manufacturing sales declined 1.3% in December, demonstrating the third consecutive monthly drop. The main reason for the decline was lower sales of petroleum and coal products. The actual … “Loonie Tumbles After Surprising Drop of Manufacturing Sales”
Euro Declines on Mixed GDP Releases, Rallies on Weak US Retail Sales
The euro today headed lower against the US dollar in the early European session before posting slight gains after the release of in-line eurozone Q4 GDP data. The EUR/USD currency pair later spiked higher following the release of disappointing US retail sales data for December. The EUR/USD currency pair today fell to a low of 1.1249 … “Euro Declines on Mixed GDP Releases, Rallies on Weak US Retail Sales”
Swiss Franc Gains Despite Falling PPI
The Swiss franc gained on most major currencies today, which was surprising considering risk appetite on markets and poor macroeconomic data in Switzerland. Switzerland’s Federal Statistical Office reported that the Producer Price Index fell 0.7% in January from the previous month after decreasing 0.6% in December. Analysts had predicted a smaller decline by 0.4%. The report explained that lower prices for petroleum products was the main reason for the decline. USD/CHF … “Swiss Franc Gains Despite Falling PPI”
Australian Dollar Retreats After Rising on China’s Trade Data
The Australian dollar was trading strong at the beginning of the Thursday’s trading session, though it has retreated by now. The rally was a result of positive macroeconomic data in China — Australia’s biggest trading partner. China’s trade balance demonstrated a surplus of $39.16 billion in January, down from $57.06 billion in December but exceeding the average forecast of $33.5 billion excess. Diving deeper into the report, its components were much better than … “Australian Dollar Retreats After Rising on China’s Trade Data”
Pound Under Pressure from Poor Housing Data, Brexit Worries
The Great Britain pound declined today, dragged down by poor performance of the housing market and Brexit worries. The currency fell versus all of its most-traded rivals, including the Japanese yen, which itself was soft. Royal Institution of Chartered Surveyors released its UK Residential Market Survey for January, showing that the house price balance worsened to -22% last month from -19% the month before. Market analysts had expected … “Pound Under Pressure from Poor Housing Data, Brexit Worries”
USD/SEK Rises Despite Prospects of Higher Interest Rates in Sweden
The Swedish krona behaved today similarly to yesterday, gaining on the US dollar intraday but falling afterwards. Yesterday, Sweden’s central bank left interest rates unchanged but signaled about prospects of a hike in the second half of this year. The Riksbank held the repo rate unchanged at -0.25%, saying that the economic situation has not changed “to any great extent.” As for recent economic developments, the central bank stated: Economic developments in Sweden … “USD/SEK Rises Despite Prospects of Higher Interest Rates in Sweden”
Japanese Yen Softens After Disappointing GDP Growth
The Japanese yen fell a bit after the release of a disappointing GDP report and was also under pressure from the risk-on market sentiment. Japan’s gross domestic product rose 0.3% in the fourth quarter of 2018 from the previous three months. While it was a better result than the 0.7% decline registered in the third quarter, the increase missed the median forecast of 0.4%. The GDP Deflator fell 0.3%, year-on-year, the same as in the previous quarter and less … “Japanese Yen Softens After Disappointing GDP Growth”
US Dollar Rebounds Despite Headline Inflation Miss
The US dollar was weak in the first half of Wednesday’s trading session but reversed losses versus some currencies later, erasing them against others outright. Slight miss of inflation print did not prevent the rebound. In fact, the greenback climbed after the worse-than-expected data. The Bureau of Labor Statistic reported that the Consumer Price Index was unchanged in January from the previous month, seasonally adjusted. Analysts had predicted a small … “US Dollar Rebounds Despite Headline Inflation Miss”