US data continues its run of good form

Yesterday’s markets

17th February 2017

  • USD – Building Permits: 1.29M
  • USD – Philly Fed Manufacturing Index: 43.3
  • USD – Unemployment Claims: 239K
  • NZD – Retail Sales q/q: 0.8%
  • NZD – Core Retail Sales q/q: 0.6%

US inflation data dominated market movement yesterday as figures showed the Consumer Price Index registering stronger than expected, with prices rising 0.6% month-on-month in January. The better than expected data continued yesterday for the States, with unemployment claims dropping and the Philly Fed Manufacturing Index posting its highest reading since 2011. The question now is whether the rise in prices and the outperforming labour market will be enough to convince the Fed to raise rates.

In other news, Anti-Islam Geert Wilders has become the frontrunner in the Dutch elections. If successful it will be another test of the anti-establishment sentiment that swept the UK out of the EU and elected Donald Trump President in the US. Wilders who is a Eurosceptic and fan of Donald Trump is favourite to win the March 15 parliamentary election. French and German voters go to the polls in May and September. 

Today’s markets

16th February 2017

  • GBP – Retail Sales m/m
  • CAD – Foreign Securities Purchases

The week will finish with the release of the monthly UK Retail Sales figure. The last figure showed consumer spending fall to 1.9%. If there is a more positive outlook this month, it could spur confidence into the Pound.  Likewise, another poor posting could see Sterling end the week on the back foot.