Date : 24th April 2017.
MACRO EVENTS & NEWS OF 24th April 2017.FX News Today
Geopolitics have continued to dominate global markets long after the June 23 Brexit vote and the November 8 Trump victory. And the emphasis will remain on POLITICS this week too following the outcome of France’s presidential election (round 1), and ahead of a “big announcement” Wednesday from President Trump on his tax plan. Eurozone and especially French markets are likely to take a sigh of relief after Macon managed to beat Le Pen in the first round of the French election and Frexit risks subside. Macron will have to wait until the second round on May 7 where he is set to beat Le Pen by a wide margin, before he officially becomes President, but markets are likely to celebrate his victory already today.
United States: U.S. markets will quickly turn to domestic politics as President Trump plans an announcement Wednesday on his tax code overhaul. However, the White House said late Friday that it would be more of a broad outline, and hence not heavy on details. The economic calendar will generally take a back seat this week. The Advance Q1 GDP report (Friday) should be one of the more interesting releases. Growth is expected to slow to a 1.3% pace, from Q4’s 2.1% pace, and continuing the trend over the last several years of measurable erosion in Q1. More timely data includes the April Dallas Fed index (Monday), the Richmond Fed index (Tuesday), the KC Fed survey (Thursday), and the Chicago PMI (Friday). March new home sales (Tuesday) are forecast falling 1.2% to 585k. Also on Tuesday are the February Case-Shiller and FHFA home price indexes, with pending home sales due Thursday. Consumer confidence (Tuesday) should slip to a still strong 124.0 in April after the surprise surge to 125.6 in March. The final April print on consumer sentiment (Friday) is expected to inch up to 98.5. March durable goods orders (Thursday) are expected to be unchanged. Finally, Q1 ECI (Friday) is forecast holding at a 0.5% pace.
Canada: Canada awaits the first look at February GDP (Friday), expected to reveal a flat (0.0%) reading after the 0.6% surge in January. But before that, some additional ingredients for the GDP projection will be released, with wholesale shipment figures (Monday) and retails sales (Wednesday). Wholesale shipments are expected to fall 0.5% m/m in February after the 3.3% surge in January. Retail sales are projected to improve 0.1% after the 2.2% jump in January. The industrial product price index (Friday) is seen rising 0.2% m/m in March after the 0.1% gain in February. Average weekly earnings for February (Thursday) and the CFIB’s Business Barometer for April (Thursday) round out the calendar.
Europe: Today,Even as the markets will be busy digesting the outcome of the first round of the French Presidential election from Sunday, traders will also have a bumper crop of data to analyze, along with the outcome of the ECB meeting. The outcome of the ECB meeting (Thursday) will also hinge to some extent on the French election result. Growth is picking up and this week’s data round is likely to add further to signs that the recovery is not just strengthening, but broadening, and that the slowing in the March HICP to 1.5% y/y from 2.0% was due to special factors. The very full data calendar has first Q1 GDP readings from France and Spain, as well as more April confidence surveys in the form of the German Ifo and the EMU ESI. There also will be a full round of preliminary April inflation numbers. The French HICP (Friday) is expected to bounce back to 1.7% y/y in April from 1.4%, while the Italian reading (Friday) is seen at 1.7% y/y from 1.4%. Spain’s price figure (Thursday) should rise to a 2.4% y/y clip from 2.1%. These should boost the overall April Eurozone CPI (Friday) to 1.8% y/y, up from 1.5% in s month. Even core inflation will be impacted by the Easter effect. Also on the week’s slate are German March retail sales, import price inflation, and GfK consumer confidence, along with French consumer spending data. The ECB meanwhile publishes the latest bank lending survey on Tuesday.
UK: Sterling rallied over 2% last week after British PM May called a snap election, which will take place on June 8 and is widely expected to see her Tory Party greatly increase its majority. Market focus will be on incoming polls, and while the main Labor Party opposition is in disarray, there is a risk that the SNP might win the vote strongly at the election, which would increase the odds for Scottish independence. After a quiet week previously, the UK data schedule picks up, highlighted by the preliminary Q1 GDP estimate (Friday) where we expect growth to slow to 0.4% q/q from 0.7%. Other data include the April CBI surveys on industrial trends (Monday) and the distributive sector (Thursday), both of which we expect to show moderation from respective April readings. Overall, the reports are expected to fit an emerging picture of stagnating economic growth, which the ONS stats office, in explaining unexpected weakness in official March retail sales data on Friday, blamed mostly on rising prices and declining real income.
Japan: Japan’s BoJ meets (Wednesday, Thursday). The Bank is widely expected to keep its very accommodative stance in place with its -0.100% policy rate, while maintaining its control over the yield curve via QE and the asset purchase program. Indeed, BoJ Governor Kuroda confirmed last week that easy policy and steady asset purchases would continue to some time. The data calendar kicks off with March services PPI (Tuesday). That’s followed by the February all-industry index (Wednesday). The balance of releases are out on Friday, beginning with March National CPI, March unemployment, preliminary March industrial production, March personal income is due, along with March PCE, March overall retail sales, March housing starts and March construction orders are also on tap.
Australia: Australia’s calendar features a double dose of inflation data: Q1 CPI is scheduled for release on Wednesday and Q1 PPI is due out Friday. CPI is expected to expand 0.6% in Q1q/q after the 0.5% gain in Q4, leaving an annual growth rate of 2.2% in Q1 after the 1.5% y/y pace in Q4. The PPI is projected to expand 0.8% in Q1 following the 0.5% rise in Q4. Trade prices for Q1 are due on Thursday, while March private sector credit will be released on Friday.
New Zealand: New Zealand’s slate has the March trade report, expected to show a NZ$200 mln surplus after the NZ$18 mln deficit in February. Building permits for March are also due Friday.Always trade with strict risk management. Your capital is the single most important aspect of your trading business.Please note that times displayed based on local time zone and are from time of writing this report.
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