Look ahead: Japan jobless rate; China manufacturing; Eurozone inflation; oil
Hot on the heels of US inflation that met expectations, investors turn their attention to the latest consumer price reading from the eurozone.
Brace for FX volatility stemming from China manufacturing and Japan’s jobless rate print. Plus, traders also get a snapshot of US services and the latest Baker Hughes oil rig count.
(AI Video Summary)
US PCE figure meets expectations, but January's inflation higher
In today's "Look ahead" video, Angeline Ong gives a quick overview of the latest economic news and market trends for Friday, 1 March. She starts off by mentioning that the PCE figure in the US was pretty much what everyone expected. However, Chris Beauchamp, IG Chief Market Analyst, points out that inflation, as measured by PCE, was higher than anticipated in January. Beauchamp isn't sure though if this indicates a threat to the ongoing trend of decreasing inflation. He explains that the Fed's preferred inflation metric, Core PCE, has actually eased in year-on-year terms, meaning it's getting closer to the Fed's target rate of 2%.
Japan unemployment rate
Moving on, Ong talks about the unemployment rate in Japan, which came in at 2.4 percent for January. She also draws attention to the fact that the value of the US dollar has been decreasing compared to the Japanese yen, and she shows a chart that looks like a descending triangle is forming. Ong thinks it's important to keep an eye on the upcoming consumer confidence numbers for February, because they could continue to impact the value of the US dollar.
Manufacturing and services PMI numbers
Next, she briefly mentions the manufacturing and services PMI numbers, as well as the Chinese manufacturing PMIs, which will be released later on. Ong then moves on to the eurozone, talking about the expected consumer price index for February and the upcoming unemployment rate figures. Some market watchers are even considering the possibility of the first cuts for ECB rates in June, depending on what actions the Fed takes.
Oil updates
Ong briefly touches on the ISM services PMI and the Baker Hughes oil rig count in the US. She points out that there may be a base forming for US crudes, but the crucial thing to watch is the upward trend line. Finally, Ong suggests checking out Shaun Murison's analysis on IG.com for a deeper look into the potential for even more growth in crude oil.
Overall, this video gives a quick summary of the recent economic data, market trends, and upcoming releases in different parts of the world.
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