Data drives market moves in currencies and indices
13:10, 29 september 2017 · Av Colin Cieszynski
It’s the last day of the week, month and quarter and morning finds traders actively reacting to a flood of economic data and positioning for next week.
The Euro is rallying this morning against both USD and GBP while the Dax is up 0.3% on the back of a very strong German employment report. The IBEX is down 0.2% as trades prepare for Sunday’s Catalonia Independence vote which the federal government is trying to block. It remains to be seen if the weekend will bring social unrest, if the vote will be held at all and what the results may be if it does happen. The FTSE is up 0.6% today while Sterling is sliding after UK Q2 GDP was revised down to 1.5% from 1.7%.
The Japanese Yen has been sliding overnight in reaction to this month’s main basket of Japanese economic reports. The election campaign has kicked off amid a round of dismal data as household spending, retail sales, industrial production, housing starts and construction all came in way below expectations.
US indices, USD, gold, oil and CAD are all steady so fat this morning ahead of US and Canadian economic reports. Canada July GDP is due which was the month of the first Bank of Canada rate hike. Bank officials have indicated that future rate hikes are data dependent and that they will be monitoring the impact of the two recent rate hikes for making future policy decisions.
In the US today, Core PCE inflation is out, a measure that the Fed likes to use which could add to the debate over a potential December interest rate increase. Chicago PMI is out mid-morning to set the stage for Monday’s national numbers, along with consumer sentiment.
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