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The USD capped another winning week with a strong breakout from its 5-week falling channel and the 50-day MA. Currently consolidating, the strong performance of late has appeared unsupported by fundamentals – those comprising a string of disappointing (ergo rate hike negative) US macro data. With risk assets also outperforming, tracking the oil price higher, USD strength and the same in precious metals appear to be borne out of speculation rather than safe haven seeking, with Gold doing well on momentum and the USD basket (DX) benefiting from bottom picking.
Looking ahead this week, we have some interesting European and US macro data prints that could serve to bring some sought after fundamental support – namely US CPI on Tuesday and the FOMC meeting minutes on Wednesday. The Euro may react to a double whammy of inflation data from the Eurozone on Wednesday and Germany on Friday, while GBP looks set to play 3rd wheel this week after last Thursday’s BoE /Brexit fun & games.
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UK Economic Announcements
Nothing of note
Intl Economic Announcements
13:30 Empire Manufacturing (US)
15:00 NAHB Housing Market Index (US)
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UK Economic Announcements
09:30 Consumer Price Index, Producer Price Index, Retail Price Index
Intl Economic Announcements
09:30 Balance of Trade (EU)
13:30 Consumer Price Index, Housing Starts, Building Permits (US)
14:15 Capacity Utilisation, Industrial Production (US)
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UK Economic Announcements
09:30 Claimant Count Rate
Intl Economic Announcements
10:00 Consumer Price Index (EU)
12:00 MBA Mortgage Applications (US)
15:30 Crude Oil Inventories (US)
19:00 FOMC Interest Rate Minutes (US)
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UK Economic Announcements
09:30 Retail Sales
Intl Economic Announcements
13:30 Initial Jobless Claims, Continuing Claims (US)
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Intl Economic Announcements
07:00 Producer Price Index (GER)
15:00 Existing Home Sales (US)
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Until next week, Take Care!
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