Morning Market Update – Greenback to be Watched

So Far

The Total Vehicle Sales saw a drop of 0.22M versus the expected sales of 17.1M. However, the vehicle sales managed to do better than the previous release of 16.62M. The United States API Weekly Crude Oil Stock dropped down from a previous 0.897M to -4.15M.

New Zealand’s Participation Rate went above forecasts (70.5%) in 1Q: Actual (70.6%),
New Zealand’s Labour cost index (YoY) came at 1.5% and went below expectations (1.7%) in 1Q.
New Zealand’s Employment Change went above forecasts (0.8%) in 1Q: Actual (1.2%),
New Zealand’s Unemployment Rate came at 4.9% and went below expectations (5.2%) in 1Q.
New Zealand’s Labour cost index (QoQ) went below expectations (0.5%) in 1Q: Actual (0.4%). The People’s Bank of China (PBOC) set the Yuan midpoint rate at 6.8892 versus
yesterday’s fix of 6.8956.

Coming Up

Moving on for the day, we have the European Central Bank’s Non-monetary policy meeting. The Producer Price Index (YoY) seems to be at -4.1% versus 4.5% in its last release. However, the Gross Domestic Product s.a. (QoQ) produced better results with 0.5% against 0.4%. This should hold the Euro and gain some momentum.

The Unemployment Change for Spain is forecasted at 21.3K versus the previous value of -48.6K. Though the forecasts look promising, we must wait for the actual results to take any call on Spain.

Germany has been steadily growing in strength with the forecasts for the Unemployment Rate s.a. at a negative 12K when compared to its previous value of -30K. The 10-y Bond Auction will be released later in the day.

The Construction PMI gave the pound a slight dip with a forecast of 52 when compared to its previous data release at 52.2.

The ADP Employment Change is forecasted at 180K when compared to its previous release of 263K. This can have a major impact for the greenback. The ISM Non-Manufacturing PMI may provide some support with 55.8 against 55.2 and EIA Crude Oil Stocks are seen at a negative 2.16M against negative 3.641M.

We must watch out for the Fed’s Monetary Policy Statement and Fed’s Interest Rate Decision which are expected to be at 1% and any changes here can have a huge difference in the day for the greenback.