Look ahead: Japan CPI; German PPI; US consumer sentiment; UK retail sales; Deliveroo
Global economic data is likely to be the main driver of Friday’s market mood, with US consumer sentiment, Japanese and German inflation and UK retail sales on deck. Plus, quarterly results from Deliveroo and Schlumberger.
(Partial Video Transcript)
Euro-dollar cross driven by ECB action
Hello, I’m Angeline Ong and welcome to IGTV and your special look ahead to Friday 19 January 2024.
We start in Japan where we have core consumer price index (CPI) numbers; expectations there for December, 2.3%. Germany also releases producer price index (PPI) data; December consensus there -0.5% month-on-month for December.
Just looking at the euro versus the US dollar, this cross very much driven by what is happening on the central bank front and as you can see there, creeping ever-so-slightly higher in that band there. Trying to find a floor perhaps if it goes any further than 10,852; the next resistance point will be 10,749.
ECB has yet to hit 2% inflation target
However, things have changed in the last week, because the European Central Bank (ECB), according to its president Christine Lagarde, who told Bloomberg that, while the central bank is on track to get its inflation back to its 2% target, victory has not yet been won.
Speaking in Davis, Lagarde went on to say that, in late spring when the ECB gets data from this year’s collective wage agreements, this could give the central bank a good idea of where household incomes stand and are going and therefore where inflation is headed.
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