Yesterday saw slightly worse than expected inflation numbers from the US. Analysts were predicting growth of 8.8% year on year and the actual number was 9.1%. This actually supported an already strong Dollar as traders factored in an almost nailed on interest rate hike next time around to try and curb these high inflation numbers.
The Bank of Canada also raised their base rate from 2.25% to 2.5% although this number is already relatively healthy compared to other developed nations around the globe. This caused an immediate strengthening in the Canadian Dollar.
GBP/EUR remains relatively healthy for the Pound although the recent move to the upside appears to have stalled a little in the last 24 hours.
Today sees Europe put out it's economic growth forecasts and the US releases jobless claims this afternoon. However it's the Chinese GDP numbers and retail sales figures out early tomorrow morning that will be most closely watched. Analysts are expecting quarter on quarter contraction for Chinese GDP which is very telling. The woes of Covid are still being felt in that part of the world.
As ever we look forward to keeping you in the loop and look out for our next update.
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Today’s Economic Calendar
EUR: 10:00 European Commission releases Economic Growth Forecasts
US: 13:30 Initial Jobless Claims
CHN: Friday 03:00 GDP Data
CHN: Friday 03:00 Retail Sales