Here are the important Market Movers of the day.
This article is originally referred from IronFX News.
Sterling retreating after doubts for rate hike in May
- The pound retreated yesterday after BoE governor Mark Carney shed doubts about a much anticipated rate hike in May.
- Carney’s comment that there are also “other meetings” this year, completed the puzzle of bad UK financial data releases over the past three days relating to inflation, employment and retail sales.
- The market reacted negatively to the comments and cable dropped by some 100 pips.
- On other news the EU seems to be rejecting a possible UK solution to the Irish border issue and the UK government auditor predicted that the Brexit bill could be exceeded by some 35-39 Billion pounds, both deepening political uncertainty.
- Should there be further negative headlines about the BoE May rate hike or Brexit we could see the pound weakening even further.
Progress for NAFTA
- Canadian foreign minister stated that there was good progress on NAFTA key issues.
- The progress seems to be related to the issue of car making and what constitutes an American car.
- All sides seem to push for a new NAFTA agreement before July 1st in order to avoid clashing with Mexican elections, and timeframes such as mid to end May for an acceptable agreement could be feasible.
- Any further positive headlines regarding NAFTA could support CAD.
Today’s other economic highlights
- Germany: PPI for March, Survey: +0.2% mom Prior: -0.1% mom, 06:00 (GMT), could strengthen the EUR
- Canada: CPI for March, Survey:+2.4% yoy Prior:+2.2% yoy, 12:30 (GMT), could strengthen CAD
- Core BoC CPI for March, Survey:+1.5% yoy, Prior: +1.5% yoy, 12:30 (GMT), could strengthen CAD
- Retail Sales for March, Survey: +0.3% mom, Prior: +0.3% mom, 12:30 (GMT), neutral for CAD
- Core Retail Sales for March, Survey: +0.3% mom, Prior: +0.9% mom, 12:30 (GMT), could weaken the CAD
- Eurozone: Preliminary Consumer Confidence for April, Survey: -0.20 Prior:+0.10, 14:00 (GMT), could weaken EUR
- US: Baker Hughes Oil Rig Count, Survey: N/A, Prior: 815, 17:00 (GMT), any reading below 815 could weaken Oil Prices
- Speakers: BoE MPC member Saunders (09:30, GMT), German BuBa President Weidmann (11:30, GMT), Chicago Fed President Evans (13:40, GMT),
- Riksbank Governor Ingves (15:00,GMT) and FOMC member Williams (15:15, GMT) speak.
Original Source: IronFX News