Low liquidity expected as Easter approaches

Yesterday’s markets

22nd March 2016

  • USD Existing Home Sales: 5.08M
  • AUD HPI q/q: 0.2%
  • RBA Assist Gov Edey Speaks

The week began relatively tame yesterday as price action remained subdued. Last week’s tone is expected to continue this week, as the Fed meeting created a structural change in sentiment towards the Dollar. Markets will be carefully assessing the Central Bank’s potential upcoming monetary policy changes. The current Fed uncertainty and the low liquidity, could create some volatility movement towards the end of the week, as many markets will be closed this Friday for the Easter holiday. 

Relatively light data was released on the economic calendar yesterday. Only two key figures were released, one from the UK and one from the world’s largest economy; the US. Firstly, UK Rightmove HPI posted a worse than expected 1.3%, as the figure depreciated a massive 1.6% from its previous reading. Across the pond, Existing Home Sales was released. The reading missed expectations of 5.32M posting a three month low of 5.08M, as the housing market in the US fails to pick up steam.  

Today’s markets

21st March 2016

  • AUD RBA Gov Stevens Speaks
  • EUR French Flash Manufacturing PMI
  • EUR French Flash Services PMI
  • EUR German Flash Manufacturing PMI
  • EUR German Flash Services PMI
  • EUR German Ifo Business Climate
  • GBP CPI y/y
  • EUR German ZEW Economic Sentiment

UK inflation will be today’s main focus as markets look to see if prices will increase as expected. The year on year figure is forecast to increase slightly to 0.4% and with price pressures seen around the globe, any upward figure is a welcome sign. From the Eurozone, Germany post their ZEW Economic Sentiment and also their Ifo Business Climate, both expected to improve on previous readings.