The Federal Reserve raised their interest rate by a quarter of a point yesterday.
Politics the Focus for U.S Investors, Disappointing Inflation Data Yesterday
U.S politics will become a focal point for investors now that the Federal Reserve has completed their anticipated interest rate hike. Tax reform legislation is still being debated in Washington and nothing is certain. The Consumer Price Index reading from the States on Wednesday proved disappointing. And the Dow Jones Industrials gained, along with the NASDAQ as the S&P lost ground. Retail Sales figures will come from the U.S relatively soon.
Data from China & Japan Hits Targets, New Zealand Figures Tomorrow
Asian equity markets turned into negative sessions today. However, Industrial data from China and Japan met their expectations. A Business Manufacturing Index will be published by New Zealand early on Friday and Japan will see the Tankan Non-Manufacturing Index. The Yen has been stronger against the U.S Dollar and remains under the 113.00 juncture.
BoE and ECB Offer No Substantial Surprises, Solid Numbers via Europe
As expected the Bank of England and European Central Bank did not alter their paths substantially regarding monetary policy today. However, the Euro remains active as President Draghi’s press conference approaches. Retail Sales data from the U.K this morning showed a surprising improvement of 1.1 percent. And German and the broad European Flash Manufacturing reading beat their estimates easily. The Euro should be monitored closely the remainder of the day against the U.S Dollar.
Speculative Trading Environment for Gold, Gold Backslides This Morning
Gold remains an alluring but speculative trading environment. After putting in gains in the wake of the U.S Fed’s interest rate hike late Wednesday, the precious metal has started to slide back the past few hours and is near 1255.00 U.S Dollars an ounce.
Draghi Press Conference Nears, Consumer Spending Data from States
European Central Bank President Mario Draghi will be in focus as he conducts his Press Conference starting at 13:30 GMT.
- 13:30 PM GMT E.U., ECB Press Conference
- 13:30 PM GMT U.S., Core Retail Sales
- 14:45 PM GMT U.S., Flash Manufacturing PMI
Yaron Mazor is a senior analyst at SuperTraderTV.
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