Blog Posts, Forex

Mid-Week Dollar Commentary: Dollar Under Pressure From Weak PPI as UK and EU Rate Decisions Loom

The U.S. Dollar has been under considerable pressure this week after the DXY rallied to a high of 95.74 last week. The Dollar Index, which is currently trading around 94.88 – 94.95 area, has been reacting to lower than expected U.S. PPI data, which fell for the first time in 18 months as both Headline and Core PPI declined by -0.01% m/m compared to an expectation of an increase of +0.2 m/m.

Positive economic data from the UK and the EU have also contributed to the Greenback’s weakness this week, with the UK reporting GDP, the Goods Trade Balance and the Average Earnings Index that all exceeded the market’s consensus.

Looking forward, Thursday will see Australia release the Employment Change and the Unemployment Rate that are respectively expected at 16.5K and 5.3%. Later that day, the BOE will release its Official Bank that is expected to remain unchanged from last month at 0.75%. The BOE also just announced that Governor Mark Carney will continue as Governor of the central bank for an additional seven months extended term, until January of 2020.  Related releases include the the BOE’s Monetary Policy Summary and MPC voting results.

The ECB will also release its Main Refinancing Rate decision on Thursday  that is expected to remain unchanged at 0.00%. The ECB is also widely expected to announce it will begin tapering QE purchases at the Press Conference led by ECB President Mario Draghi.

Friday’s highlight’s include U.S. Retail Sales and Core Retail Sales that are expected out at 0.5% and 0.4%, as well as a speech by the BOE’s Governor Carney.

Disclaimer:

TheFXperts’ Forex MarketWatch Reports are provided strictly for educational purposes and represent the opinions of the authors. No recommendation or endorsement for specific financial trading or investment purposes is offered. Subscribers are advised to seek financial, business and legal guidance from licensed professionals.

Visit TheFXperts’ official website at www.TheFXperts.com.  You can also view and purchase Jay and Julie Hawk’s six financial books at Jay’s Amazon author page here: amazon.com/author/Jayhawk

Jay Hawk Books Header for FB

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s