- U.S. headline and core CPI up by 0.1% vs. 0.2% forecast
- U.S. initial jobless claims at 253K vs. 270K estimate
- Fed official Lockhart: Won’t push for a hike in April
- Iranian oil exports up more than 600K barrels per day
Dollar pairs took a break from making big moves across the charts, as traders might be lightening up on their positions to avoid weekend risk.
Weak U.S. inflation data – Following yesterday’s downbeat PPI releases, the U.S. economy printed weaker than expected CPI readings for March. Headline CPI posted a mere 0.1% uptick instead of the estimated 0.2% increase and so did the core version of the report. Components of the report showed that the drop in the food index was mostly responsible for the weaker read, as components for energy and all other items posted gains.
On a less downbeat note, the initial jobless claims landed at 253K, much better than the estimated 270K figure and the previous 266K readings, which indicates positive momentum in the jobs market.
Crude oil in focus ahead of Doha meeting – Traders continued to watch oil-related reports closely, looking for clues on what the leaders of the top oil-producing nations might come up with during their April 17 pow-wow.
According to a report on Bloomberg, Iran’s crude oil exports surged by 600,000 barrels per day, keeping in line with their pledge to ramp up production with their return to the oil export market. Meanwhile, the International Energy Agency noted that the oil market might stabilize around the second half of this year as the world surplus could shrink to 200,000 barrels per day on falling U.S. shale oil production.
Major Currency Movers:
GBP – The British pound still had some follow-through after the BOE interest rate statement in the earlier trading session.
GBP/USD retreated from a high of 1.4175 to a low of 1.4132, GBP/JPY bounced off a low of 153.88 to 154.93, EUR/GBP reached a high of .7980, and GBP/AUD is testing the resistance at 1.8400.
CAD – Price action among Loonie pairs was still jittery, with traders pricing in their expectations for the Doha meeting.
USD/CAD came close to the 1.2900 handle then retreated to 1.2840, CAD/JPY found support just below 85.00 and is up to 85.34, EUR/CAD is cruising along 1.4450, and GBP/CAD found resistance at 1.8200.
Watch Out For:
- 2:30 am GMT: RBA Financial Stability Review
- 3:00 am GMT: Chinese GDP q/y (6.7% expected, 6.8% previous)
- 3:00 am GMT: Chinese industrial production y/y (5.9% expected, 5.4% previous)
- 3:00 am GMT: Chinese fixed asset investment ytd/y (10.4% expected, 10.2% previous)
- 3:00 am GMT: Chinese retail sales y/y (10.4% expected, 10.2% previous)
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