Busiest day of the week

Yesterday’s markets

14th April 2016

  • GBP BOE Credit Conditions Survey
  • USD Core Retail Sales m/m: 0.2%
  • USD PPI m/m: -0.1%
  • USD Retail Sales m/m: -0.3%
  • USD Core PPI m/m: -0.1%
  • USD Crude Oil Inventories: 6.6M
  • AUD Employment Change: 26.1K
  • AUD Unemployment Rate: 5.7%

Chinese exports rose early morning yesterday, giving the Yuan a much needed boost. Chinese exports jumped 11.5% in March from a year earlier, the biggest rise in a year, and imports declined to 7.6%. The Shanghai composite index rallied after the news to a three month high. China are still trying to rebalance the second largest economy in the world from the manufacturing sector to the tertiary sector and the bullish trade data will be a welcomed piece of news. 

The US released a raft of high tier data yesterday, including Inflation and service sector data. Firstly, US Retail Sales fell unexpectedly as households cut back on purchases of automobiles, further proof that economic growth stumbled in the first quarter. The Retail figure was worse than forecast at -0.3%. Simultaneously, the US PPI (Producer Price Index) was released. PPI, a key indicator of inflation continued to lag at -0.1% as it remains in negative territory.

Today’s markets

13th April 2016

  • EUR Final CPI y/y
  • GBP MPC Official Bank Rate Votes
  • GBP Monetary Policy Summary
  • GBP Official Bank Rate
  • GBP Asset Purchase Facility
  • GBP MPC Asset Purchase Facility Votes
  • USD CPI m/m
  • USD Core CPI m/m
  • USD Unemployment Claims
  • USD FOMC Member Powell Speaks
  • GBP MPC Member Shafik Speaks
  • AUD RBA Financial Stability Review

Today is the busiest day of the week in terms of data releases. Following the inflation release from the UK earlier this week, the Eurozone posts its y/y figure in the morning and is again set to remain in deflation territory at -0.1%. The US then follow suit in the afternoon with their m/m CPI gauge, with expectations set for prices to see an overall increase back to a positive figure. The ideal level for inflation is at the 2% mark. The price of oil and energy dropping this week has added further pressure on the CPI figures across the globe, thus cooling any rate rises to be seen in the near future.  From the UK, the Bank of England is set to deliver no surprises as they are expected to keep rates on hold at 0-9 and leave the current asset purchases unchanged as well.