Friday’s market movers
- Friday morning we had the CPI MoM and YoY figures released both figures were better than the previous. We saw Euro against US Dollar pick up from 1.3790 to 1.3840 (USD/EUR).Later, because of the fear for the inflation and dollar’s strengthening due to the Tsunami, we had euro drop nearly 100pips to 1.3750.
- UK PPI input and output came out as well: MoM figures were worse than the previous and expectation. YoY figures were better than the previous and expectation. However, sterling continued on a downward trend against US dollar due to the risk aversion from the disaster in Japan (GBP/USD). Cable dipped below 1.60 key level, found modest support at 1.5960, and gained back gradually from mid day back to 1.6080.
- US Retail Sales gave positive data in the afternoon. A 1% increase in Feb for Retail Sales and a 0.7% increase in Feb for Retail Sales ex Autos, both of which are better than previous and expectation. This news considerably controlled the risk aversion. Euro and Sterling gained back the strong position since then.
- On the other hand, we still can feel less confidence from the consumer since Reuters/Michigan consumer sentiment index plunged in March, which is lower than last month and consensus. Nevertheless, the risk aversion did not stop the euro and sterling going upwards.
Today’s market movers
- UK nationwide consumer confidence is due to release at midnight.
- Only piece of date coming out day time today will be the EMU industrial production in January, which is predicted to increase from -0.1% to 0.4%. If it comes out as expectation, it would strengthen the euro.