By Dhilshan Sandanarajah
This week has seen the USD continue to weaken against major pairs, as post FOMC has produced uncertainty around the timing of a U.S initial rate hike. The USD index fell below the 96.25 mark, as EUR/USD was able to make a break above the 1.1 mark today. Talks still continue between Greece and its European Creditors as its April 20th deadline closes in, there is some worry of whether Greece will run out of money.
This morning saw the release of retail sales as figures released had a much more positive outlook, with the year on year at 5.7% compared to an expected figure of 4.7%. With the year on year inflation for the UK reaching 0% on Tuesday, there were fears surrounding the UK reaching negative territory in inflation, as a few BOE members raised concerns of the next step being to ease Monetary Policy. However today’s figures for retail sales has settled fears over deflation as consumption has reacted positively to low inflation. GBP/USD was able to make a surge just below the 1.5 mark before exhausting, as many BOE members are confident that the next phase of action in Monetary Policy will be a rate hike.
Later came the release of U.S Jobless Claims data as figures were slightly mixed as initial claims came in slightly better at 282k while continuing claims was slightly worse at 2.416m, however with the USD index plummeting for most of today, it was able to pare back its losses as it surges towards the 97 mark.
Other than that a fairly quiet day in terms of news, with later today seeing the release of Markit Services PMI for the U.S. More importantly though, tonight will see figures released for Japanese CPI as BOJ members were fairly adamant that inflation is likely to see a positive turn and their use of monetary easing will be predominantly based on CPI figures, the previous annual CPI figure was at 2.4%.
That’s the wrap for today, Good Luck with your trading endeavours.