The US dollar saw a slight dip as some markets remained in holiday mode. However, towards the end of the week, the USD gained strength due to better-than-expected job reports released by the US.
As we begin a new week, the financial world is buzzing with anticipation of some economic reports. All eyes will be on the Bank of Canada Rate Statement and FOMC Meeting Minutes, alongside the eagerly awaited CPI, PPI and Retail Sales data release in the US. These reports are crucial for traders navigating the markets and making informed decisions.
Here are key events to watch out for:
The CPI in the US rose 0.4% month-on-month in February 2023, after rising 0.5% in January.
For March, analysts expect the reading to increase by 0.3%
As previously signalled, the Bank of Canada kept its overnight rate target steady at 4.5% during its March 2023 meeting.
The central bank stated that it intends to maintain the current rate if the economic conditions align with the latest Monetary Policy Report’s expectations.
The Fed raised the fed funds rate by 25bps to 4.75%-5% in March 2023, matching the February increase, and pushing borrowing costs to new highs since 2007, as inflation remains elevated.
The decision came in line with expectations from most investors, although some believed the central bank should pause the tightening cycle to shore up financial stability.
Employment in Australia created an additional 64,600 jobs to reach 13.83 million in February 2023, surpassing market predictions of 48,500, following a downward revision of 10,900 jobs in the previous month.
Analysts expect employment will add 20,000 jobs in March 2023.
The British economy expanded 0.3% month-on-month in January 2023, partially bouncing back from a 0.5% contraction in December when strikes halted business activities.
For February 2023, analysts expect the UK GDP to expand further by 0.2%.
Producer prices for final demand in the US fell 0.1% month-on-month in February 2023.
For March, analysts expect the US PPI to go up by 0.1%.
Retail sales in the US were down 0.4% month-on-month in February 2023, following an upwardly revised 3.2% surge in January.
For March 2023, analysts expect US Retail Sales to contract by 0.4%.
The University of Michigan revised the US consumer sentiment downwards to 62 in March 2023 from the preliminary figure of 67. This marks the first decrease in sentiment in four months, as consumers anticipate an upcoming recession.
For April 2023, analysts forecast the data to stand at 62.7.
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