Mid Market Update – USD Looks to Recover

Asian Markets

New Zealand’s ANZ Activity Outlook rose to 38.8% in March when compared to the previous rate of 37.2% and New Zealand’s ANZ Business Confidence dropped down to 11.3 in March when compared to the previous value of 16.6.

Australia’s Private Sector Credit (YoY) dropped down to 5% in February from a previous rate of 5.4% and Australia’s Private Sector Credit (MoM) went up to 0.3% in February from a previous rate of 0.2%.

China’s Non-manufacturing PMI went up to 55.1 in March from a previous value of 54.2 and

China’s NBS Manufacturing PMI rose to 51.8 in March from a previous value of 51.6. According to Reuters reports, the People’s Bank of China (PBOC) cleared out a 290 bln Yuan from the market through Open Market Operations (OMOs) versus a net injection of 80 bln Yuan. There are speculations stating the weakening of economic activity in the future.

The Chinese Foreign Minister remarked on the trade relationship with the US. The Chinese venture for the United States may bring in employment opportunities and China is willing to work with the US in order to promote trades.

Other Markets

The Consumer Price Index released by INSEE for France seems to remain under the same levels at 1.4% and this should not cause any major impact. The Unemployment Rate released by the Bundesagentur for Germany is forecasted at 5.9% and looks to continue around the same levels. The Unemployment Change shows a positive signal and is forecasted at –10K showing a better improvement than the previous value of -14K. We believe that this data should have a major impact.

The Gross Domestic Product released by the National Statistics for (YOY) and (MOM) are posted to remain at the same levels and is not expected to harm the movement of the pound for the day. The core Consumer Price Index released by Eurostat remains the same. The Euro Zone CPI released by the Eurostat Consumer Price Index shows some decline and is forecasted at 1.8% than the previous data which was much stronger at 2%. The Gross Domestic Product released by the Statistics Canada looks to remain at 0.3%.

We have a few major releases for the dollar. The Chicago Purchasing Managers Index released by ISM-Chicago is forecasted at 56.5 and is well above 50 ranges. The Michigan Consumer Sentiment Index released by the University of Michigan shows better results for the dollars and we expect to see some solid recovery for the greenback.