The Fed is ready to start tapering in November. Since the markets were expecting this and it wasn’t a surprise, the USD slumped allowing risk-on currencies and gold to rally up.
Euro zone surge speeds down again in March
Euro zone businesses concluded the first quarter of this year with probably the slowest surge for more than a year. The given outcome turns to be weaker than anticipated because new business appeared to take another hit from a shockingly strong common currency, according a poll.
In February, the euro zone's economic boom had already ceased because soaring prices put pressure, and a Reuters survey earlier this month told that surge had reached its climax, demonstrating a concern over the European Central Bank because it drifts away from an extremely loose monetary policy.
IHS Markit's flash composite PMI for the euro zone, considered to be a good indicator of economic health, headed south to 55.3 in March, which is far below all estimates in a Reuters survey that had forecast a more moderate dive to 56.7 versus February's final outcome of 57.1.
The survey compiler IHS Markit told that the data – notwithstanding severe weather also influencing March - pointed to firm first-quarter GDP surge of about 0.7%, which is a bit faster than the 0.6% forecast in a Reuters survey.
Since the beginning of 2018 the common currency has gained over 2% versus the evergreen buck, and it’s supposed to proceed with rising, thus making the bloc's services and goods less affordable for foreign buyers.
Since December export surge has more than halved from quite elevated levels. It definitely coincides with the strengthening of the common currency. Market experts guess that some of that currency effect might take its toll.
Aside from that it affected the EU’s dominant service industry. As a matter of fact, its PMI edged down to a five-month minimum of 55.0 versus 56.2, and also below all estimates in a Reuters survey that had foreseen an outcome of 56.0.
US Retail Sales will be out on October 15 at 15:30 MetaTrader time (GMT+3).
Australia will release employment change and an unemployment rate on Thursday, October 14, at 03:30 MT (GMT+3).
The United States will release the weekly Unemployment Claims on October 21, at 15:30 MT time (GMT+3).
Great Britain will publish the Inflation Rate on October 20, at 09:00 MT time (GMT+3).
The bullish movement in the stock market is gaining speed, and Bitcoin ETFs are closer than they might seem. What do we need to know for the next trading week?