After the ECB Sintra Forum, the focus is on economic data. On Thursday, Japan and Australia will report on retail sales. The New Zealand ANZ Business Survey will also be published in Asian time. Later, attention will turn to inflation data from the Eurozone. In the United States, jobless claims, a new estimate of first-quarter GDP and pending home sales will be released.
Here’s what you need to know on Thursday, June 28:
The central bankers ratify in Sintra their respective monetary policy orientations and the path of “data dependency”, which is not surprising. Attention now turns to economic data, particularly inflation. Bailey, from the Bank of England (BoE), Lagarde, from the European Central Bank (ECB), and Powell, from the Federal Reserve (Fed), mentioned that there is still work to be done, since they see inflation above target for the at the moment and see no rate cuts on the horizon.
Australia and Italy reported a slowdown in their annual rates of the Consumer Price Index, with readings below expectations. On Thursday it will be the turn of Germany and Spain, which will report their data before Friday’s publication in the Eurozone. In the United States, the Core Personal Consumption Expenditures Index, the Fed’s preferred measure of consumer inflation, will be reported on Friday.
I don’t think we will return to 2% inflation this year or next; I think we are making progress,” Fed Chairman Powell said at the Sintra Forum. He will speak again on Thursday in European time in Madrid at a Financial Stability conference. No surprises expected. As for economic data, in the US, weekly jobless claims, a new first-quarter GDP reading and pending home sales will be published.
US stocks ended mixed on Wednesday, while US Treasury yields fell in line with global bonds, despite signals from central banks that more rate hikes are likely. Gold initially hit fresh lows near $1,900 but later pared losses. Crude oil prices rebounded, with WTI falling to test monthly lows near $67.00, before starting to recover and ending the day up 2.20%.
The Dollar Index rose 0.35%, driven by Fed rate hike expectations and ended near 103.00, the highest daily close in two weeks. Looking towards the end of the month and the quarter, trade flows could trigger volatility.
The EUR/USD pair briefly traded below 1.0900, but then bounced back to 1.0920. Despite the fall against the US dollar, the euro was one of the most bullish values. The EUR/GBP pair jumped to 0.8655, the highest level in a month. GBP/USD lost more than a hundred points, stabilizing above 1.2600.
USD/JPY it continued to rise and hit a new multi-month high above 144.50. The BOJ’s Ueda offered no turn signals. Data from Japan to be released on Thursday includes retail sales and consumer confidence.
The Aussie fell after the Australian CPI declined in May to a 13-month low of 5.6% from 6.8%, below market expectations of 6.1%. These figures raised bets that the Reserve Bank of Australia (RBA) will keep rates unchanged at next week’s meeting. On Thursday, Australia will report retail sales. AUD/USD is testing levels below 0.6600 and remains under pressure.
The NZD/USD suffered its worst daily drop in weeks, breaking below 0.6100. The Kiwi lagged behind, and the USD/NZD bounced from weekly lows towards 1.0900. The ANZ business survey will be released on Thursday.
USD/CAD it rose for the second day in a row, reaching its highest level in two weeks above 1.3250. The CAD remains under pressure after Tuesday’s softer-than-expected inflation data.
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Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
