US in focus once again

November 15, 2018

A huge volume of data should ensure another day of volatility, while a Brexit deal clears a significant hurdle.

The EUR/USD opened the day at $1.12878 and declined throughout early and mid-session trading, hitting a low of $1.12619. The pair took off shortly afterwards, rallying to a high of $1.13469 just a few hours later. It then fell to $1.12748 before rallying again to $1.13442. It has come off those levels and is currently trading at $1.13110. The GBP/USD opened the day at $1.29693 and climbed in the opening hour to $1.30330. From there, it began a slow, gradual slide down, hitting $1.28846. It then rallied $1.30349 before plummeting to a low of $1.28795. The pound was not finished however, surging to a high of $1.30705 a couple of hours later. It could not hold onto those highs and is currently trading at $1.29951.

The Dow disappointed once again after opening at 25,371.03. The index declined through the first half of the day, falling to 25,213.93 before rallying to a high of 25,493.20. Then the disappointment set in. Late trading saw the Dow tumble to a low of 24,931.20. It climbed off those lows and closed at 25,080.40. The Dax closed near it’ opening price, but there was plenty of volatility in between. The German index opened at 11,433.63 and fell to lows of 11,309.60 a few hours later. From that low, the Dax surged to a high of 11,565.00. It gave up a lot of those gains and closed at 11,405.10.

The day ahead is a busy one for markets, with the US once again in the spotlight. The US will be releasing Retail & Core Retail Sales data. There are some lofty expectations for both figures, given the lacklustre figures at the last reading. Retail Sales are expected to grow by 0.6% (up from 0.1% at last reading), while the Core Retail Sales figure is expected to show a 0.5% growth in the sector (up from -0.1% at last reading).

The UK have cleared a significant hurdle in their Brexit deal plans, with Theresa May securing critical government support for her draft deal. It now needs the approval of the UK parliament, which could still prove tricky, considering the ruling party only has a one-seat majority, while politicians on both sides of politics have strong views on any Brexit deal that is put up.

Other data set for release today includes:

Europe – Trade Balance

Canada – ADP Non-Farm Employment Change

UK – Retail Sales, MPC Member Silvana Tenreyro speaks

Australia – Employment Change, Unemployment Rate, RBA Assistant Governor Guy Debelle speaks

US – Philly Fed Manufacturing Index, Empire State Manufacturing Index, Import Prices, Unemployment Claims, Business Inventories, Import Prices, Crude Oil Inventories, Natural Gas Storage, Fed Chair Jerome Powell & FOMC Member Raphael Bostic speak


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