- Chinese CPI weaker than expected at 1.8% vs. 2.1%
- Chinese PPI down by 2.0% year-over-year
- BOJ economic advisers recommend slashing corporate tax to 20%
- German trade surplus to increase from 15.7B to 16.9B EUR
- UK manufacturing production data due
After all that excitement in previous forex trading sessions, price action seems to have calmed down a bit in the past few hours. EUR/USD hovered above the 1.3800 major psychological support while GBP/USD edged slightly lower to 1.6916. USD/JPY made a quick rebound above the 101.50 mark.
Aussie pairs saw more action as Chinese inflation reports were released. The annual CPI fell short of expectations at 2.1% and printed a mere 1.8% figure. Meanwhile, the PPI release hinted at weaker inflationary pressures down the line as it showed a 2.0% decline in producer prices. AUD/USD got knocked down to the .9350 area right after the release while NZD/USD slipped below .8650.
In the upcoming trading session, we’ll get a couple of medium-tier reports from the euro zone and the U.K. economy. Germany is set to print its trade balance and possibly show a wider surplus of 16.9 billion EUR from the previous 15.7 billion EUR. The U.K. will release its manufacturing production numbers for March and probably show a 0.3% uptick, slower compared to the previous 1.0% increase. While these releases are not likely to spark multi-hundred pip moves, bear in mind that weaker than expected results might force the pound or euro selloff to resume.
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
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