Thursday, market overview we start with positively surprising CPI report from New Zealand. We will look at the most important publications of the day, including – data regarding changes in GDP in the UK.
Without a doubt, the most important figure of today’s Asian session was New Zealand’s inflation report, which from the perspective of Europeans was published yesterday before midnight.
The change in level of consumer inflation in New Zealand surprised the market – which expected admittedly increases, but the optimistic consensus assumed change in the amount of 1.2% y/y. Finally, in the fourth quarter of last year, the CPI in New Zealand increased by 1.3% y/y and 0.4% on a quarterly basis. Positive is also the fact of revision of the previous readings to 0.4% y/y and 0.3% q/q.
Surprisingly strong inflationary pressures calms RBNZ, which at this point has no reason to further reduce interest rates. To the same conclusion came market, which after night publication tested strong resistance in the region of 0.7300. Sellers , however, prevailed the strength of buyers and ultimately from midnight NZD/USD corrects:
What are we waiting for?
First of all morning data from the UK. We will know the preliminary report on the changes in gross domestic product in the fourth quarter of last year. Forecasts point to a likely slowdown in growth from 2.2% previously (annualized) to 2.1% today. In the chart of GBP/USD, you can see the first signs of preparations for a morning publication, although both the arrangement of candles and averages favor growth:
For further important information after morning publication from UK we will have to wait until 14:30. Then the Americans will publish series of data containing December trade balance report, initial jobless Claims and preliminary results in wholesale from January. Quarter before 16:00 we will know the preliminary calculation of the PMI for the services sector, and punctually at 16:00 will be published report on changes in the level of real estate sales in the primary market. This report symbolically will close the day in the markets.