Yesterday’s economic data from the US were mostly mixed. Existing Home Sales and Unemployment Claims went in opposite directions.
Since the Non-farm payrolls data is due next week, the market is concentrating on employment information, hence the disappointing Unemployment Claims figure to hurt the US dollar.
Today’s traders will see the Revised Michigan Sentiment, Personal Spending, and Core PCE Price Index data.
And what happened in the market? All the aforementioned things pushed the EUR/USD higher, touching the 1.58 mark. This was also fueled by worrying inflation data from Europe – something that might force Trichet to raise the interest rate.
Trichet’s ECB will make its call next week, something that might push the Euro above 1.60, or might send it plunging back to 1.55. The expected hike is 0.25 percent.
The British currency beat the US dollar and other currencies as well. This might have been caused by data that is expected to be published today in the UK. Current Account and Final GDP are expected.
And finally, crosses on the Japanese Yen collapsed yesterday. Poor Retail Sale and rising prices for consumers (Tokyo Core CPI) hurt the Yen.
So, this was an interesting week, but the next week promises to be much more exciting!Get the 5 most predictable currency pairs