Daily Market Report
Looking at the week ahead economic calendar, traders will be monitoring the latest inflation figures from both Canada and the UK through the consumer price index releases.
In the U.S., retail sales are expected to have risen from 0.3% to 0.5%, likewise, unemployment claims are due to rise from 237K to 242K. Moreover, investors will keep an eye on building permits and housing starts figures later this week, while in Australia, the focus will be on the latest employment data.
In the FX market, the U.S Dollar faced strong selling pressure as the Dollar index broke below the 100 psychological support reinforcing the bearish outlook for the Greenback against other major currencies in the short term. Many market participants started to think the FED can realize a soft landing following the recent drop in inflation, however, core inflation remains elevated and still away from the FED’s target which can diminish the probability of a potential rate cut later this year. Both the Euro and the British pound were strongly higher against the U.S Dollar reaching highs of 1.1245 and 1.3144 respectively, while the USDJPY pair sell-off drove the pair towards the key support of 137.25 which represents the low of May 18th.