Euro recovers as Pound Sterling weakens on unchanged GDP estimates
Key Notes:
- Japan retail sales y/y 5% vs. 5.3%
- Australia private capex q/q -4.4% vs. -2.3%
- Switzerland trade balance 2.86bn vs. 2.77bn
- German import prices m/m 0.6% vs. 0.5%
- UK revised second estimate GDP q/q 0.3% vs. 0.4%; prelim business investment q/q 1.7% vs. 1.2%
- UK index of services 3m/3m 0.4% vs. 0.5%
- Canada RMPI m/m 3.8% vs. 1.7%
- US weekly unemployment claims 282k vs. 271k
Later:
- US pending home sales
The Japanese Yen continued to weaken considerably across the board as retail sales data today failed to meet expectations rising 5%, below estimates of 5.3%. USDJPY was trading near the 124 handle posting fresh multi year highs but failed to break any higher. Across the board, the Yen lost ground to most of its peers, including the weaker Aussie and the Kiwi dollars.
Australia’s private capital expenditure declines -4.4% for the quarter which saw the Aussie continue to weaken against a stronger Greenback. AUDUSD was trading below 0.765 close to the US trading session, while NZDUSD dipped lower to post fresh monthly lows after breaking below 0.72 handle.
The European trading session was relatively quiet with only the German import price data on the tap, which managed to rise above estimates. There were rumors about a Greek deal underway but was quickly dismissed. The Euro was trading relatively stronger today after managing to trim the losses since yesterday, touching a session high to 1.0948.
UK’s second estimate GDP remained unchanged at 0.3% and fell below estimates of 0.4%. The Pound Sterling weakened considerably across the board falling through the 1.53 handle. The EURGBP managed to gain on the Pound’s weakness as the currency pair was trading above the 0.71 handle.
The Greenback’s bullish momentum was showing signs of stalling as economic data from the US were light. Weekly unemployment claims rose more than expected to 282k, above 271k estimates. The Greenback was initially muted to the data but remains under pressure in the short term. Other economic data later today includes the pending home sales data as well the weekly crude oil inventories which could bring some volatility to Crude oil which has been trading near the 57.35 support level. A break lower could see Crude oil post new lows for the month.
