Market Analysis: Will Inflationary Data coming from US and NZ affect Interest Rates in the future?

May 30, 2017

Here is the summary of today's financial markets.

Market Analysis: Will Inflationary Data coming from US and NZ affect Interest Rates in the future?

This article is originally referred from FXPrimus News

Today’s Important Indicators

On Tuesday, more volatility is expected as inflationary data coming from the US and NZ are going to be released.

The Core PCE Price index, Fed’s favorite measure of inflation, followed by the Consumer Confidence are going to be published.

Previous data showed a deceleration in inflation and reduction in confidence, respectively.

The RBNZ Financial Stability Report may affect the interest rates in the future hence the Bank’s view on inflation could be anticipated by investors to enter possible trades.

Today’s Forecast for Important Trading Indicators

 Time in GMT  Country  Indicator  Expected  Previous
 03:00 pm  US  CB Consumer Confidence  120.1  120.3
 10:00 pm  NZ  RBNZ Financial Stability Report  –  –

Market Movers

  • Sterling was Monday’s prime mover, recovered 0.31% against the Greenback and Euro. The British Pound saw a bullish rebound during closed UK, US and Chinese markets, however it remains under pressure below the 1.28900 level with a bearish bias. The substantial move was based on widened weekend poll numbers.
  • Euro slides against the Dollar for the 3rd consecutive session amid lack of data from Draghi’s testimony. Euro closed 0.1% lower on Monday however remained on a range while trading above 1.11230 level; the 50 EMA kept the bulls in play. Investors focus on today’s Consumer Confidence data release while political turmoil on EU-US relationship weigh. This morning the pair broke the 1.11616 support, which may be signalling the end of the bullish cycle.

EURUSD 4 HOUR CHART

  • Crude Oil starts lower on Monday only to close back up a notch above the $50/b. Oil fell on increased U.S drilling activity, recovers last Thursday’s on a short-covering mode. Oil currently trades just below $50/b.
  • Gold holds within bullish channel, increasing the chances for another push towards the $1295 level. XAUUSD remains high above $1266 on Monday’s close, supported by increased uncertainty over the coming NFP report despite traders giving an 80% chance of an increased rate hike in June.
  • USDJPY in consolidation despite North Korea missile test while on techs, it tops at the 50 EMA. Yen traded in a range due to closed markets as well as the fact that investors are becoming familiar with North Korea’s test. The pair settles around the 111.000 level, remaining on a bearish trend, a breakout of which was confirmed this morning. The pair steady at 110.825 support.

USDJPY 4 HOUR CHART

  • Asian Indices traded lower on Monday’s session except the Hang Seng which closed +0.24 higher

FXPRIMUS Official Website

Original Source: FXPrimus News

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