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Dollar gaining across all currencies

  • CNY Industrial Production 6.8%
  • ECB President Draghi Speaks
  • UK Manufacturing Production -0.5%
  • MPC Member Speaks

Yesterday saw the Euro slide to a new 12 year low against the greenback and a 7 year low against the Pound, fueling further talk of parity between the Dollar and the Euro later this year.  The Dollar is the driving force still behind this market move with Sterling also falling to a 7 month low. Emerging market currencies also feeling the impact of this Dollar bull run, with the Indonesian Rupiah slumping to a 17 year low, and the South African Rand falling to a fresh 13 year low.  Expectations of a rate hike sooner rather than later from the Fed is the reason for this as investors are now buying up the Dollar, in anticipation of the hike this year.

Manufacturing and Industrial production figures from the U.K. yesterday disappointed both falling below forecast of 0.2%. Manufacturing fell -0.5% for the month of January with Industrial output falling to -0.1%.  The downturn in these figures were due to the fall in electronic and computer output which fell by 9.5%, the largest monthly decline since 2002. 

  • EUR German CPI 0.9%
  • EUR French CPI 0.7%
  • USD Core retail sales
  • USD Retail sales
  • USD Unemployment claims
  • GBP Carney speaks

This morning two monthly CPI figures were released from the Eurozone, Germany’s CPI came out as expected followed by France; their figure surpassed forecasts of 0.6% and registered at 0.7%.

Today the focus is on the release of U.S. retails monthly sales figure.  Previously registered at -0.8%, expectations are for this gauge to increase to 0.5% coupled with unemployment claims due out at the same time we could see the Dollar strengthen further if this data is to come out as expected or better.