Forex News

US Inflation Does Not Support An Increase On Interest Rates; Stock Markets Awaiting The Meeting In Doha

In the last few weeks, the minds of investors are focused especially on one question and it concerns surely the Federal Reserve. Investors are wondering if the Fed will decide to raise US interest rates. The data from the United States, however, make it unlikely to tighten the monetary policy in next months. Here the main data released on the US economy during this week.

The hypothesis of a rise in US interest rates in Federal Reserve next meeting seems definitely waned. The data released this week showed a decline in inflation on an annual basis and on a monthly basis.

In detail, the index of consumer prices in March recorded an increase of + 0.1%, making it better than the previous -0.2%. The consumer price index on annual basis and for the month of March instead reported an increase of + 0.9% against a previous figure of +1%.

The initial claims for US unemployment for the second week of April have decreased from 266,000 to 253,000. Also the jobless claims have fallen, from 2.189K to 2171K.

This week ended with the figures for US consumer sentiment and on inflation expectations for the month of April.

The data is organized by the University of Michigan and show that consumer confidence UoM is 89.7, down from the March figure, at 91.0. The UoM Inflation expectations for the month of April amounted to 2.7%, in line with the previous month.

Moving on to the inflation of the ‘Old Continent’, Eurozone registered an increase of + 1.2% on a monthly basis. The annualized Eurozone inflation has lost the minus sign with a 0% variation, better than the -0.1% of the previous figure. The core version of the consumer prices index recorded a decrease of -0.1% on an annual basis, better than the previous figure of -0.2%. On a monthly basis, the increase is remarkable in March with a 1.3% jump against a previous 0.2%.

Data relating to imports and exports of the Eurozone in the second month of this year has a surplus of 19.0 billion euro. The Eurozone trade balance is raising markedly compared to the same data in January, which saw a surplus of 6.2 billion euro.

In the last opening day of the week, European stock markets have moved cautiously downward until the opening of Wall Street and ahead of the meeting in Doha of the OPEC and non-OPEC oil producers planned for April 17.

Meanwhile, the dark period of the New Zealand dollar-US dollar exchange rate seems to be over. It has failed due to the strength of the US currency that took place in the central part of the week.

Having been one of the worst positions for the first quarter of 2016, the New Zealand dollar continued its appreciation path consistently.

The beginning of next week sees undergone a major market mover for the New Zealand dollar, with the consumer price index expected to increase.

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