Daily Update - 15th March 2018
Investors were expecting US Retail sales figures to move the market in favor of the greenback but unfortunately it provided zero support as the figures did not meet the expectations. German Harmonized index of Consumer Prices were positive and was supporting the Euro until Draghi made a dovish speech at an ECB meeting. He pressed on the fact that inflation is not up their mark and Monetary Policy must be patient and persistent because underlying inflation remains subdued and inflation needs to rise to end Quantitative Easing. His comments sent the Euro down to a week’s low against the dollar. Negative Euro zone industrial production figures also meant Euro had no support on the data front until US Retail Sales report surprised everyone. Markets were expecting for Retail sales to rebound after falling -0.3% at the start of the year but instead sales dropped for the second month in a row by -0.1%. One of the main reasons for negative figures is the recent volatility in the equity market which has discouraged investors from big spending. As a result of the negative figures, the dollar and U.S. stocks tumbled. Thursday is a day dedicated to the dollar as few mid-tier reports will be released in favor of the greenback. Initial reports will indicate figures on US employment while the latter will indicate the US housing market. The NAHB Housing market index presents home sales and expected home buildings in the future indicating housing market trend in the United States. However, the main focus will be the appointment of Larry Kudlow. Kudlow is a well-known financial media personality and his appointment would reassure the market, providing near term relief for greenback. This may draw the investors back to the Dollar.Yesterday’s Market
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