News & Analysis

European Round-Up: Wednesday 17th April

April 18, 2019

Economic News Releases

  • China – Gross Domestic Product YoY (Q1) at 6.4% vs 6.3% forecast
  • China – Gross Domestic Product QoQ (Q1) at 1.4% vs 1.4% forecast
  • Japan – Industrial Production YoY (Feb) at -1.1% vs -1.0% forecast
  • UK – Consumer Price Index YoY (Mar) at 1.9% vs 2.0% forecast
  • UK – Retail Price Index YoY (Mar) at 2.4% vs 2.6% forecast
  • UK – Retail Price Index – Input YoY (Mar) at 3.7% vs 3.9% forecast
  • EU – Consumer Price Index YoY (Mar) at 0.8% vs 0.8% forecast
  • EU – Consumer Price Index Core YoY (Mar) at 1.4% vs 1.4% forecast
  • US – Trade Balance (Feb) at $49.4B vs $-53.5B forecast
  • Canada – Consumer Price Index YoY (Mar) at 1.9% vs 1.9% forecast
  • Canada – BoC Consumer Price Index Core YoY (Mar) at 1.6% vs 1.3% forecast
  • UK – BoE’s Governor Carney Speech
  • EU – ECB’s Lautenschlager Speech
  • US – Fed’s Bullard Speech
  • US – Fed’s Beige Book
  • (overnight) Japan – Total Net TIC Flows (Feb) $¥1,463.7B previous

To keep up to date with the upcoming economic events click here for our Economic Calendar.

Forex

  • US Dollar

A busy day today on the data front, so we have included only the higher impact pieces above, for the full list of economic releases, please click the link above to see the interactive economic calendar.

The Dollar index sliding a little bit after the U.S. Trade deficit narrowed to an eight-month low, pressured on the grounding of Boeing’s 737 Max planes. As a result, we are seeing the USDollar slide away from the resistance level we have drawn just above the $97 handle.

US DOLLAR – DAILY

  • Pound Sterling

Despite the UK economy reporting softer data on almost all of its economic releases today, the Sterling-Dollar rate remains remarkably flat on the day, only ever trading around 25pips in either direction from its opening price for the day.

On the technical front, we have now broken the supporting trendline we’ve had drawn for some time now, but as we hypothesised previously, given dark cloud hanging over Sterling in the form of Brexit, without a macro stimulus we are not seeing much of a reaction to this. For the time being it looks like the consensus is for GBPUSD to continue to grind lower awaiting a catalyst for the next move. Another aspect of note is that as of April the one-month at the money volatility, used for calculating options, has more than halved so far.

GBPUSD – 4 Hour

 

Forex Majors Summary

Commodities 

A pretty flat day today for the Oil markets, currently trading down $0.04 a barrel or -0.05% on the day, we also covered this in our Chart of The Day available here -> COTD – Oil

Metals also pretty flat today, but they too have seen a little bit of a slide lower, both Gold & Silver. Gold currently down $2.28 an ounce or -0.18% and Silver is down $0.01 an ounce or -0.10%.

USOUSD – Daily

Indices

A mixed for Global Indices with the U.S. indices and FTSE100 grinding lower, however, the DAX, CAC40 & EuroStoxx50 all pushing further into positive territory.

In the U.S., Indices are fractionally lower today, however, it is very fractionally. Again, earning season weighs in the U.S.


Cryptocurrencies

Cryptocurrencies mixed again today, with Bitcoin Cash leading the decline down -3.06% and XRP boasting the largest gain on the day, up 2.66% today.

For the latest Chart of the Day by our click here.

By Alex Simcock
 @Alex_GoMarkets

This article is written by a GO Markets Analyst and is based on their independent analysis. They remain fully responsible for the views expressed as well as any remaining error or omissions. Trading Forex and Derivatives carries a high level of risk.

Sources: GO Markets MetaTrader 5, Datawrapper, Tradingview, CoinMarketCap, Bloomberg, Twitter