The Euro was high on positive economic data in Tuesday's trading recording a three weak high. The currency's recovery comes on the back of a 0.8% rise in q/q GDP in the Euro-area and a 30.9 ZEW economic sentiment signalling investors confidence in the growth of the Euro economy for the next 6 months. Italian GDP was also above expectations and strong growth in central and eastern European countries added to the overall positive tone. EUR/USD returned to 1.1804 in the course of trading on Tuesday. French m/m CPI and the Euro-area's trade balance are expected in today. Investors bullishness on the Euro will however be dependent on major economic data coming out from other climes.
GBP had a rough encounter in Tuesday's trading as inflation numbers stood at 3.0%, falling short of analyst forecast by 0.1%. input PPI rose to 1% while Retail Price Index (RPI) and Core CPI came out disappointing. GBP/USD fell to 1.3074 before retreating back to 1.3186. Traders were cautious, watching closely the debate of the EU Withdrawal Bill. The legislation is crucial to ensure a smooth transition after Brexit but with only a small working majority, the prime minister, Theresa May, could struggle to pass the bill as up to 10 Conservative MPs are reportedly planning to vote against it. News coming in early Wednesday morning notes the British government defeated the first amendments to the bill. The bill however has a long way to go with the parliamentary scrutiny expected to take weeks. Earnings index, claimant count & unemployment data are expected in today. This together with the ongoing bill debate will set the tone for the British pound in Wednesday's trading.
The US dollar remains under pressure as declining treasury yields continues to weigh down the greenback. The dollar struggled against the Japanese yen dropping to a low of 113.29. During the Asian session it drop further to 113.05 despite Japan's poor GDP numbers. The currency however takes the center stage today with the release of CPI & retail sales data. Analyst forecast show a decline in CPI to 0.1% while retail sales is expected to fall to 0.0%.
On the commodities side, gold rebounded to 1,283 on the back of the declining dollar, while Brent crude fell by 1.17% to $61.48.
GBP had a rough encounter in Tuesday's trading as inflation numbers stood at 3.0%, falling short of analyst forecast by 0.1%. input PPI rose to 1% while Retail Price Index (RPI) and Core CPI came out disappointing. GBP/USD fell to 1.3074 before retreating back to 1.3186. Traders were cautious, watching closely the debate of the EU Withdrawal Bill. The legislation is crucial to ensure a smooth transition after Brexit but with only a small working majority, the prime minister, Theresa May, could struggle to pass the bill as up to 10 Conservative MPs are reportedly planning to vote against it. News coming in early Wednesday morning notes the British government defeated the first amendments to the bill. The bill however has a long way to go with the parliamentary scrutiny expected to take weeks. Earnings index, claimant count & unemployment data are expected in today. This together with the ongoing bill debate will set the tone for the British pound in Wednesday's trading.
The US dollar remains under pressure as declining treasury yields continues to weigh down the greenback. The dollar struggled against the Japanese yen dropping to a low of 113.29. During the Asian session it drop further to 113.05 despite Japan's poor GDP numbers. The currency however takes the center stage today with the release of CPI & retail sales data. Analyst forecast show a decline in CPI to 0.1% while retail sales is expected to fall to 0.0%.
On the commodities side, gold rebounded to 1,283 on the back of the declining dollar, while Brent crude fell by 1.17% to $61.48.
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