Morning Market Update – Euro Rules the Day

So Far

New Zealand Building Permits s.a. (MoM) dropped down to -7.6% in April from a previous -1.8%. There was a mixed reaction for the Yen with the Japanese Jobs/applicants ratio going above the forecasts (1.46) in April: Actual (1.48). Japan Overall Household Spending (YoY) went below expectations (-0.7%) in April: Actual (-1.4%)

Japan Unemployment Rate was in line with expectations (2.8%) in April and Japan Retail Trade (YoY) registered at 3.2% went above expectations (2.3%) in April. Japan Retail Trade s.a (MoM) went up from a previous 0.2% to 1.4% in April and Japan Large Retailer’s Sales rose to 1.1% in April from a previous -0.8%.

The Australian dollar saw some better results with Australia Building Permits (MoM) coming in at 4.4% and rising above expectations (3%) in April and Australia Building Permits (YoY) rising up from a previous -19.9% to -17.2% in April.

Coming up

Moving on for the day, we have the KOF Swiss Leading Indicator showing a slight edge when compared to the previous release at 16 and is forecasted at 106.2. This might prove to be good for the Swiss in the day.

Euro seems to rule the day with the Economic Sentiment Indicator showing better results when compared to the previous releases. The Business Climate, Industrial Confidence and Consumer Confidence data releases are in favor of the Euro as their forecasts are much better when compared to the previous releases.

Forecasts suggest that Germany’s Consumer Price Index and Harmonised Index of Consumer Prices may take a hit today as data releases are not supportive for Germany in the day. The Canadian dollar seems to be lost in the day with the Current Account forecasted at a negative 12B when compared to the previous release of 10.73B.

On the other hand, greenback has some major releases in the day and is forecasted to be way better than other currencies. The greenback proves to be the best bet along with the Euro with Personal Income at 0.4% when compared to the previous release at 0.2% and Personal Spending at 0.4% when compared to the previous release at 0%.

The Core Personal Consumption Expenditure and Personal Consumption Expenditures have been showing some improvements. However, we must keep a watch on them today. Any values that go below expectations can see some downfall for the greenback.  The Consumer Confidence shows weaker signs with 119.5 when compared to the previous release at 125.6 and this can dampen the spirit of the greenback and pull back the gains that were made in the day.

 
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