US and UK key data points, divergence of inflationary environment - ANZ

Ross J Burland FXStreet

Analysts at ANZ noted that US Jan CPI beat expectations overnight at 2.5% y/y - its highest increase since March 2012.

Key Quotes:

"Although some of this was due to base effects in energy prices, which rose 10.8% y/y. Core inflation moved up to 2.3% y/y (from 2.2%), supported by a 3.1% y/y rise in services costs (ex- energy). US retail sales in January rose 0.4% m/m and 0.8% m/m ex-autos, with 10 out of the 13 categories reporting gains."

"Manufacturing production rose 0.2% m/m."

"Elsewhere, the UK labour market data pointed to ongoing momentum in jobs, but the average earnings data fell short of expectations (2.6% y/y vs 2.8%). However, the average earnings data complement the lower than expected CPI data (1.8% y/y) suggesting that inflationary pressures remain in check for the time being. The BoE therefore has no need to fret on rates at the moment."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD stays weak above 1.1750 ahead of German/ EU PMI data

EUR/USD remains on the back foot above 1.1850 in the European session on Friday, well within striking distance of a nearly one-month low set the previous day. Unabated US Dollar demand and nervousness ahead of the German and Eurozone business PMI data keep the pair undermined.

GBP/USD recovers above 1.3450 after strong UK Retail Sales data

GBP/USD is recovering ground above 1.3450 in European trading on Friday, helped by a modest uptick in the Pound Sterling after a bigger-than-expected increase in the UK Retail Sales for January. However, the further upside appears limited in the pair amid persistent US Dollar strength and ahead of key UK and US data.

Gold rises for third day on geopolitical risks, US data eyed

Gold gains some positive traction for the third consecutive day on Friday. The upside potential, however, seems limited amid the mixed fundamental backdrop. Moreover, traders might opt to wait for the key US macro releases – the Advance Q4 GDP report and the Personal Consumption Expenditures (PCE) Price Index – before placing fresh directional bets.

Bitcoin, Ethereum and Ripple remain range-bound as breakdown risks rise

Bitcoin, Ethereum, and Ripple are trading sideways within consolidation ranges on Friday, signaling a lack of directional bias in the broader crypto market. BTC rebounded from key support, and ETH is nearing the lower consolidation boundary, while XRP is holding at its lower trendline boundary.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Official Trump price approaches breakout with mixed signals from traders

Official Trump (TRUMP) is trading at $3.50 at the time of writing, approaching its upper consolidation range. A breakout from this range could open the door for an upside move. On-chain data shows market indecision, with balanced flows between bulls and bears, signaling a lack of clear directional bias.