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Weaker Euro surprises markets

  • AUD - Retail Sales m/m: -0.1%
  • GBP - Halifax HPI m/m: -0.1%
  • CAD - Housing Starts: 214K

The Euro continued to weaken against its major counterparties throughout the day yesterday after Macron surged to victory in the French Presidential election. Markets had initially priced in a Macron victory, which therefore led to the ‘buy the rumour, sell the fact’. General risk-on tone has been seen post Macron’s win with most Asian equity markets in the green and oil prices stabilising. In terms of GBP/EUR, markets now expect some key technical levels to be tested as we expect a higher level of volatility to return.

UK house prices fell by 0.1% last month, according to data released by Halifax Bank of Scotland yesterday. Over the first quarter of 2017, house prices fell by a total of 0.2%, the first quarterly decline since November 2012. However, house prices over the quarter were still 3.8% higher than the same period a year ago.  

Back in the Eurozone, Germany released their factory orders figure yesterday. The secondary sector data exceeded expectations, posting a 1% increase for March. The figure increased by 2.4% from this period a year ago, due to a boost in German exports.

  • AUD - Annual Budget Release
  • USD - JOLTS Job Openings
  • CAD - Building Permits m/m

A relatively quiet data slate today, with only one piece of high tier data released. The US are scheduled to announce their JOLTS job openings this afternoon, with economists’ expecting the bullish labour data trend to continue. Last week’s non-farm payrolls exceeded the consensus and unemployment in the States posted just shy of a decade low. If this continues, this afternoon we should see some Dollar strength after the release.