With the end of the week and the end of the month rapidly approaching, traders have taken a more cautious stance in preparation for next week’s big economic announcements and potential showdowns. US GDP was revised downward into negative territory which has kept moderate pressure on US indices and USD today on speculation this could impact corporate earnings and delay interest rate liftoff. The reaction to Canada’s soft GDP report (1.5% vs street 2.1%) has been more substantial as the news sparked a swift selloff in the Loonie driving it above $1.2500 or below $0.8000 depending on how you look at it. Perhaps surprisingly CAD is not the worst performing currency on the day, that distinction has gone to NZD which has come under renewed fire following big drops in New Zealand sentiment surveys. Crude oil had been trading higher overnight but has lost ground in the last hour or so. NOK has been strong on better than expected Norwegian retail sales or employment figures and perhaps this has cushioned the blow on CAD but if oil continues to retreat, oil-sensitive currencies could lose ground as well. European indices are trading flat to lower this morning with the Dax leading the declines with a 1.0% drop. Ongoing contradictory statements about where Greek negotiations are at continue to drag on markets and weaker than expected German retail sales haven’t helped either. In addition to reacting to overnight news, traders may spend the day preparing for next week. Next Friday has the potential to be a key day for trading with a Greek payment deadline, OPEC meeting and US nonfarm payrolls all on the same day. The runup through the week may also be active with PMI reports from around the world, a Bank of England meeting and US ADP payrolls all on the schedule. Corporate News Bank of Nova Scotia $1.43 vs street $1.39 Economic News Economic reports released overnight and this morning include: US Q1 GDP (0.7%) vs street (0.9%) & previous 0.2% US Q1 personal consumption 1.8% vs street 2.0% US Q1 core PCE inflation 0.8% vs street 0.9% Canada March GDP 1.5% vs street 2.1% Canada Q1 GDP annualized (0.6%) vs street 0.3% Japan unemployment rate 3.3% vs street 3.4% Japan consumer prices 0.6% as expected vs previous 2.3% Japan industrial production (0.1%) as expected Japan vehicle production (7.5%) vs previous (6.5%) Japan housing starts 0.4% vs street 0.2% Germany retail sales 1.0% vs street 2.5% Spain consumer prices (0.2%) vs street (0.5%) Sweden GDP 2.5% vs street 2.8% Norway retail sales 2.0% vs street 0.3% Norway manufacturing wages 0.2% vs previous 0.9% Norway unemployment rate 2.7% vs street 2.9% Italy GDP 0.1% vs street 0.0% Greece GDP 0.2% vs previous 0.1% Greece retail sales (0.4%) vs previous (3.3%) India GDP 7.3% as expected Brazil GDP (1.6%) vs street (1.8%) Australia new home sales 0.6% vs previous 4.4% NZ ANZ activity outlook 32.6 vs previous 41.3 NZ ANZ business confidence 15.7 vs previous 30.2 Upcoming significant announcements include: 9:45 am EDT US Chicago PMI street 53.0 10:00 am EDT US Michigan consumer sentiment street 89.5 10:00 am EDT US Michigan 1 year inflation estimate previous 2.9% 1:00 pm EDT US Baker Hughes drill rig count previous 885 CMC Markets is an execution only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
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