US Inflation data was released yesterday, with the initial reaction seeing USD pairs strengthen and Equities selloff. However, once the first 15 minutes had passed, post data, the trend reversed and the USD weakened further while Equities were short squeezed and bid higher. The US 500 Index dropped from 2672.90 to a low of 2627.7 but has since rebounded to highs of 2706.50. Gold sold off from 1330.70 to a low of 1317.20 but rebounded to currently trade around its highs of 1354.00. USDCAD moved higher after the data from 1.25763 to 1.26480 but is now trading at its lows near 1.24808. German Harmonised Index of Consumer Prices (YoY) (Jan) was released coming in unchanged at 1.4%, as expected. Gross Domestic Product (QoQ) (Q4) was also as expected at 0.6%, from 0.8% previously. Gross Domestic Product (YoY) (Q4) was 2.3% v an expected 2.2%, from 2.3% previously. Gross Domestic Product w.d.a. (YoY) (Q4) was 2.9% v an expected 3.0%, from 2.8% previously. SNB Governing Board Member Zurbrugg delivered a speech titled “Cash – a means of payment yesterday, today, and tomorrow” at the Bundesbank Cash Symposium in Frankfurt. His comments were: that the central bank is not planning to issue digital currency. He said that digital currencies won’t displace cash anytime soon and they do not pose a problem for central banks currently. USDCHF moved higher from 0.93183 to 0.93582 after the comments. Italian Gross Domestic Product (QoQ) (Q4) was as expected at 1.6%, from 1.7% previously. Gross Domestic Product (YoY) (Q4) was 0.3% v an expected 0.4%, from 0.4% previously. Eurozone Gross Domestic Product s.a. (QoQ) (Q4) was as expected, unchanged at 0.6%. Gross Domestic Product s.a. (YoY) (Q4) was also as expected at 2.7%, from 2.6% previously, which was revised up to 2.7%. Industrial Production w.d.a. (YoY) (Dec) was released at 5.2% v a consensus of 4.2% and a prior of 3.2%, which was revised up to 3.7%. Industrial Production s.a. (MoM) (Dec) was 0.4% v an expected 0.2%, from 1.0% previously, which was revised up to 1.3%. The EURUSD pair moved lower to 1.23455 after this data. US Retail Sales (MoM) (Jan) was released coming in at -0.3% against an expected 0.2%, from 0.4% previously. Retail Sales ex Autos (MoM) (Jan) was 0.0% v an expected 0.4%, from 0.4% prior, which was revised down to 0.1%. Retail Sales Control Group (Jan) was 0.0% v an expected 0.4%, from 0.3% prior. Consumer Price Index (MoM) (Jan) was 0.5% v an expected 0.3%, from 0.1% previously, which was revised up to 0.2%. Consumer Price Index (YoY) (Jan) was 2.1% v an expected 1.9%, from 2.1% previously. Consumer Price Index Ex Food & Energy (YoY) (Jan) was 1.8% v an expected 1.7%, from 1.8% prior. Consumer Price Index Ex Food & Energy (MoM) (Jan) was 0.3% v an expected 0.2%, from 0.3% previously, which was revised down to 0.2%. USDJPY went to a high of 107.541 before dropping back to 107.122. EURUSD dropped to 1.22757 from a high of 1.23508. …
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