This week, we looked at the following topics,
- US CPI m/m
- US Retail Sales m/m
- GBP CPI y/y
- BOC Rate Statement
Also a written analysis by Jin:
ECB monetary policy meeting “minutes” indicated a plan in early 2018, to gradually shift away from accommodative policies and guidance. This is interpreted as a slightly hawkish stance towards the EUR, resulting in a greater than 100pip climb in 3 hours.
Expectations for tonight’s economic data on the US CPI & Retail sales are to be weaker than previous month. The inclement weather could have a negative impact on the data. However, this data will be considering the activities from December, the festive period.
Therefore, we might prepare for a shock data for the USD, but still trade cautiously, as USD has been weakening for the past week.