US Data Supports Dollar

Market Reviews

The markets have little reaction on today’s data, ahead of long weekend. US dollar was slightly supported by economic data. US personal income increased by 0.5% in February, spending grew by 0.2%. Headline CPI accelerated to 1.8% yoy while core PCE also grew to 1.6% yoy. Initial jobless claims fell by 12k to 215k (the lowest level since January 1973). Continuing claims increased by 35k to 1.87m in the week, ended March 17.

The euro has received some support from strong data on the German labor market. The Federal Labor Agency reported, that the number of unemployed decreased by 19.000 people in March, although economists had expected unemployment to fall by 15.000 people. The seasonally adjusted unemployment rate fell to 5.3% in March from 5.4% in February. This was the lowest value since reunification in 1990. Also from Germany, the consumer price index rose 1.6% last month, compared with the same month a year earlier, and by 0.4% from a month earlier.

Canadian dollar shrugs off worse than expected GDP data and stays as the second strongest currency for the week. Canada’s GDP fell by 0.1% mom in January versus expectation of 0.1% mom. IPPI grew 0.1% mom in February versus expectation of 0.4% mom. RMPI declined by 0.3% mom versus expectation of 2.8% mom growth.

The UK Q4 GDP was finalized at 0.4% qoq. Current account deficit narrowed to GBP -18.4b in Q4. Index of serves rose 0.6% 3mo3m in January. M4 money supply dropped -0.4% mom in February. Mortgage approvals dropped to 64k in February. UK Gfk consumer confidence rose to -7 in March, up from -10 and above expectation of -10.