The currency markets are holding their breath in anticipation of the wave of key data to come out of China and Europe today which may set the tone for the global economy’s performance in Q2. No pressure.
Strong data out of both regions could offset the growing concerns of a global slowdown and boost risk appetite, but weak data could cause further instability and risk aversion. China will be reporting GDP, Industrial production and retail sales numbers which could all have a serious bearing on the Yuan.
Europe on the other hand will release average earnings, construction and unemployment data which has the potential to weigh on the Euro if the region’s recent run of poor form continues. The US Dollar edged up slightly this morning against its peers as nervous investors awaited the all-important announcements.
Manwhile, down under in Australia, the Aussie Dollar fell from its 7-week high after the Reserve Bank of Australia (RBA) struck a new dovish tone on interest rates. Even though the RBA said there was no case for a cut in the near-term, deteriorating GDP and inflation data may drive a shift in monetary policy towards the end of 2019.
Who’s got FX fever?