Ambiguous Sentiment, US Inflation Data Ahead
Overall, the sentiment at the market is rather uncertain. The Pound can’t find a follow through buying. Pound/Yen is still holding under the short term resistance of 1.3929. Greenback and euro are both soft. Australian and New Zealand dollars remain firm. Today’s key event is the US Consumer Price Index release. The data isn’t likely to change the case of 4 rate hikes in 2018, particularly the March one. Still, it could provide details on the tax cut influence.
As of Trump’s decision to impose steel and aluminum tariffs, Justin Trudeau (Canadian Prime Minister) stated that the fact that Canada was excluded from the tariffs wasn’t a “magical favor being done”, as “millions of jobs on both sides of the border depend on continued smooth flow of trades”.
Australia NAB business condition rose 3 points to the maximum of 21 in prior month. Business confidence fell 3 points to 9. Australian home loans reduced -1.1% mom in January. The National Australian Bank projects a rate hike by the end of this year or in the beginning of the next year. Today we’ll get: British annual budget, US CPI and Stephen Poloz’s (BoC Governor) speech.