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Uncle Sam is about to release a preliminary gauge of consumer sentiment!
After yesterday’s retail sales miss, how could the UoM index influence dollar pairs today?
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
ECB official Knot says interest rate cut may be in the cars for June, then September and December
U.S. producer prices index for February 2024: 0.6% m/m (0.3% m/m forecast/previous)
U.S. retail sales for February: 0.6% m/m (0.5% m/m forecast; -1.1% m/m previous): Core Retail Sales at 0.3% m/m (0.4% m/m forecast; -0.8% m/m previous)
U.S. initial jobless claims at 209K vs. 218K expected, previous week’s reading revised from initially reported 217K figure to 207K increase in joblessness
New Zealand BusinessNZ manufacturing index rose from 47.5 to 49.3 to reflect slower pace of industry contraction in February
Japanese tertiary industry activity index slowed from 0.5% to 0.3% month-over-month in January vs. estimated 0.1% uptick
French final CPI reading upgraded from initially reported 0.8% month-over-month increase in January to 0.9%
Price Action News
Overlay of USD vs. Major Currencies Chart by TradingView
Despite mixed U.S. economic data, the dollar was still the king of pips in the New York trading session and has extended its rally into Asian market hours.
Headline and core PPI figures beat estimates, underscoring strong price pressures, but retail sales fell short of estimates to hint that the consumer sector is feeling the brunt of rising costs.
Still, the Greenback popped higher, most notably against the Aussie and Kiwi, as hawkish Fed bets strengthened while risk-off flows weighed on higher-yielding currencies.
Upcoming Potential Catalysts on the Economic Calendar:
U.S. Empire State manufacturing index at 12:30 pm GMT
U.S. industrial production and capacity utilization at 1:15 pm GMT
U.S. preliminary UoM consumer sentiment index at 2:00 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! ️
USD/CAD 15-min Forex Chart by TradingView
Later today we’ll have an early look at the mood of U.S. consumers for the current month, so dollar pairs could be in for additional volatility. Can this spark a pullback on USD/CAD as it tests the short-term channel top? Leave your thoughts in the comments below!
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