Tuesday’s market review should start with an interesting technical situation that appeared on USD/JPY. The pair after overnight series of data from Japan is testing support around 111.80. Investors instead are focused on the upcoming US session.
The market has been very positively surprised by the publication of a report on changes in the level of retail sales in Japan. Reading came in at -0.1% y/y instead of the projected 1.2%. Better than expected turned out to be the household spending, the annualized decreased by -0.4%, but the forecast was a decline of -1.0%. The unemployment rate in Japan remained unchanged at 3.0%. USD/JPY tested today level around 111.80 and so far, all indications are that, despite better data, the yen will continue to lose against the dollar:
EUR morning increases are explained by the more positive data that come to us from different countries of the Euro Zone. The German import price index against the forecasts of increased yoy to -0.6% instead of -0.8%, while the French index of consumer spending rose to 0.9% m/m. Also, maintaining the level of consumer inflation in Spain on previous levels means that European investors are a bit more willing to buy the common currency. EUR/USD is still in slightly negative territory after the Asian session but with aspirations for more:
What should draw our attention ?
Of course mainly afternoon data listed in the macro calendar below:
One of the most important publications will be German CPI report. Markets will track also publication of next estimate of US GDP. Forecasts for this indicator has already risen to 3.0% .Quarter after 15:00 will hear public appearance of
William Dudley of the FOMC, and at 16:00 we will track consumer confidence index by Conference Board.
