by JustForex
On Thursday, the results of the ECB meeting somewhat disappointed investors. Promises to increase the speed of assets purchases don’t indicate an increase in the final volume of the program for 1.85 trillion euros. If the monetary regulator increases the speed of purchases in the next three months, then the volume may decrease. Against this background, the euro reduced the losses incurred in the European session, and by the end of the day increased by 0.47% to 1.1985.
At the beginning of the European session on Friday, new GDP data were received from the UK National Statistics Office. In January, the economy decreased less than expected during a quarantine that closed schools and some retail stores. Gross domestic product decreased by 2.9% after increasing by 1.2% in December. Economists forecasted that there will be a decrease by 4.9%.
The data will influence the Bank of England’s decision next week on whether the UK needs more stimulus for recovering from its biggest recession in three centuries.
Another report indicated the strongest monthly decrease in manufacturing output since April last year by 1.5%. The indicator is much worse than market forecasts: the average median of the forecast assumed a reduction by 0.6%.
The situation points to an uneven recovery of the global economy. Investors are increasingly focused on a faster recovery of the US economy, which supports the demand for risk. After a slight decline in government bond yields, there is less concern that the recovery from the pandemic will cause excessive inflation. However, Treasury yields are still showing an upward tendency, which could still trigger another wave of declines in stock prices. With the opening of the European session, the indicator returned to the level of 1.60%.
Free Reports:
Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Main market quotes:
S&P 500 (F) 3,922.38 -14.37 (-0.37%)
Dow Jones 32,485.59 +188.57 (+0.58%)
DAX 14,492.45 -76.94 (-0.53%)
FTSE 100 6,716.95 -20.01 (-0.30%)
USD Index 91.757 +0.339 (+0.37%)
- – UK GDP (q/q) at 09:00 (GMT+2);
- – UK Manufacturing Output (m/m) (Jan) at 09:00 (GMT+2);
- – US Producer Price Index (m/m) (Feb) at 15:30 (GMT+2);
- – Canada Employment Change (Feb) at 15:30 (GMT+2).
by JustForex
- As expected, the RBNZ cut the rate by 0.5%. Australia’s inflation rate remained at its lowest level since the summer of 2021 Nov 27, 2024
- EUR/USD Steady Ahead of Major US Data Releases Nov 27, 2024
- NZD/USD Hits Yearly Low Amid US Dollar Strength Nov 26, 2024
- Trump plans to raise tariffs by 10% on goods from China and 25% on goods from Mexico and Canada Nov 26, 2024
- Fast fashion may seem cheap, but it’s taking a costly toll on the planet − and on millions of young customers Nov 25, 2024
- “Trump trades” and geopolitics are the key factors driving market activity Nov 25, 2024
- EUR/USD Amid Slowing European Economy Nov 25, 2024
- COT Metals Charts: Weekly Speculator Changes led by Platinum Nov 23, 2024
- COT Bonds Charts: Speculator Bets led lower by 5-Year & 10-Year Bonds Nov 23, 2024
- COT Soft Commodities Charts: Speculator Bets led lower by Soybean Oil, Soybean Meal & Cotton Nov 23, 2024