Dollar keeps rising thanks to US Yields and Upbeat Data

Daily Update - 16th May 2018

Yesterday’s Market

• EUR Gross Domestic Product, ZEW Survey, Industrial Production
• GBP Average Earnings, ILO Unemployment Rate & Claimant Count
• USD Retail Sales

Yesterday Explained

The Greenback reverted most of its early Monday losses as it climbed broadly higher against all major rivals thanks to surging US treasury yields and upbeat US data. British pound found little support from upbeat UK jobs data while not so promising GDP figures from both Germany and whole euro zone suggested that the euro zone economic growth is slowing down.

The release of better-than-expected US monthly retail sales suggested that the US economy is picking up pace after a slow start to the year. Investors seem more confident on dollar as improving economic indicators revived expectations that the Fed might need to raise interest rates more aggressively and remained supportive of the prevailing bullish sentiment surrounding the greenback.

Today’s Market

• EUR Consumer Price Index
• USD Housing Starts, Building Permits and Industrial Production

Today’s Focus

Another important day for Euro as April Inflation figures for Euro zone will be released. Investors will be hoping the euro can stage a recovery if the figures are better than expectations. Mario Draghi, President of ECB is expected to deliver a speech in Frankfurt

The final half of the day belongs to US with the release of housing data and industrial figures. The housing figures will show how many new single-family homes or buildings were constructed along with the number of permits for new construction projects.