IronFX Daily Commentary by Charalambos Pissouros | 14/02/2017
February 14, 2017 9:59 am
Dollar consolidates ahead of Yellen’s Congressional testimony • Fed Chair Yellen will testify before the Senate Committee on Banking, Housing & Urban affairs. • Market action will come from her view on the economy and whether she is seen as likely to vote in favor of a hike in the near-term. • She was quite upbeat recently. As data have remained solid, we expect similar comments. • Prob. for a March hike=18%. Confident comments may cause that to surge, and support USD.
Overnight: China’s inflation data amplify the global reflation theme • China’s CPI and PPI rates for Jan. surged by more than exp. This supported AUD. • Accelerating inflation allows the PBoC more space to tighten its policy, if needed. • Also, this is very positive for CB’s like the ECB and BoJ. China has stopped “exporting deflation”. • May ease some of the depreciation pressure on EUR and JPY (but near-term outlook of both currencies remains cautiously negative).
As for the rest of today’s highlights: • Germany: ZEW survey for Feb. Expectations index is exp. to decline. May prove DAX-negative. • UK: CPI rate for Jan. is exp. to have risen further. GBP-positive. Further acceleration in the CPI could cause some hawkish BoE members to vote in favor of a rate hike in the foreseeable future. • Eurozone: 2nd estimate of Q4 GDP and industrial prod. for Jan. • US: NFIB small business optimism and PPI, both for Jan. • Speakers: Besides Chair Yellen, Dallas Fed Pres. Kaplan and Atlanta Fed Pres. Lockhart.
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Dollar consolidates ahead of Yellen’s Congressional testimony
• Fed Chair Yellen will testify before the Senate Committee on Banking, Housing & Urban affairs.
• Market action will come from her view on the economy and whether she is seen as likely to vote in favor of a hike in the near-term.
• She was quite upbeat recently. As data have remained solid, we expect similar comments.
• Prob. for a March hike=18%. Confident comments may cause that to surge, and support USD.
Overnight: China’s inflation data amplify the global reflation theme
• China’s CPI and PPI rates for Jan. surged by more than exp. This supported AUD.
• Accelerating inflation allows the PBoC more space to tighten its policy, if needed.
• Also, this is very positive for CB’s like the ECB and BoJ. China has stopped “exporting deflation”.
• May ease some of the depreciation pressure on EUR and JPY (but near-term outlook of both currencies remains cautiously negative).
As for the rest of today’s highlights:
• Germany: ZEW survey for Feb. Expectations index is exp. to decline. May prove DAX-negative.
• UK: CPI rate for Jan. is exp. to have risen further. GBP-positive. Further acceleration in the CPI could cause some hawkish BoE members to vote in favor of a rate hike in the foreseeable future.
• Eurozone: 2nd estimate of Q4 GDP and industrial prod. for Jan.
• US: NFIB small business optimism and PPI, both for Jan.
• Speakers: Besides Chair Yellen, Dallas Fed Pres. Kaplan and Atlanta Fed Pres. Lockhart.
Join us for more technical and fundamental analysis: http://www.ironfx.com
To get the latest Forex trading news you should:
• Download the IronFX Research app: http://goo.gl/jhQIxO
• Like us on Facebook: https://www.facebook.com/IronFX
• Follow us on Instagram: https://www.instagram.com/ironfx
• Follow us on LinkedIn: https://goo.gl/wSEbPN
• Follow us on Twitter: https://twitter.com/IronFXGlobal
• Circle us on Google+: https://www.google.com/+Ironfxglobal
• Subscribe to our Channel: http://bit.ly/1foFmCU
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