UK CPI rises to 2.7% from 2.35
The inflation trade continues with CPI data around the world pointing upwards in recent weeks. The BoE continue to say they will look through this temporary rise however their most recent forecast called for a peak of 2.8% and we are nearly there.
Japanese GDP rises to 2.2% from 1.4%
This is the fifth consecutive rise and the largest for more than 10 years, more fuel to the BoJ who remain the most dovish of central banks. The only negative point in the data was the rise came from exports, mostly to China, and not increased domestic spending. Japan needs its consumers in the shops if it is to fire the economy.
Aussie Unemployment Rate drops to 5.7% from 5.9%
The most unreliable of data points ticks lower, this will increase the chances of the RBA taking a more neutral tone in its next meeting but not by much, The falling price of metals will keep the Aussie down for the time being.
Canadian Inflation holds steady at 1.6%
The outlier in world inflation, an expected uptick did not materialize which surprised the market and continues to put pressure on the loonie. It makes the CAD look risky if oil starts to fall.
A senator calls for Trump to be impeached
A growing sense of chaos within the Trump administration makes the likelihood of tax reform and regulation cutbacks less likely. If the new administration continues to lurch from crisis to crisis without moving any policy forward the US equities will come under real pressure and risk sentiment will fall with them. Rate hikes from the FED will go on hold and the Yen will begin to rise.
US Industrial production rises 1%
An unexpected rise that comes on the back of last weeks rise in retail sales, the US economy continues to shows signs of life with modest growth becomming the trend. Perhaps the FED don't need the Trump effect.
Trading Results Last Week
Another rather poor week, hit rate remains stuck at less than 58% with 7 out of 12 trades making money. Total pips gained was 171 enough to make ends meet but no Ferrari on the shopping list!
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