GLOBAL DATA FLOWS TAKE CENTER STAGE
A steady stream of economic data will make its way through the financial markets on Thursday, giving investors the latest glimpse into the health of the global economy.
Action begins at 07:00 GMT with a German report on unemployment for the month of March. The jobless rate in Europe’s largest economy is forecast to dip to 5.3% from 5.4% in February.
The United Kingdom is also due to report on gross domestic product (GDP) at 08:30 GMT. The British economy is projected to grow 1.4% annually in the fourth quarter. However, total business investment is forecast to grow just 1.9% compared with 2.1% the previous quarter.
German data will make headlines once again at 12:00 GMT with reports on consumer inflation. Germany’s Federal Statistics Office will present the consumer price index (CPI) and harmonized index of consumer prices (HICP). Both figures are expected to show a rise in inflation during March.
Shifting gears to North America, the US Department of Commerce will report on personal incomes and outlays at 12:30 GMT. Personal income from all sources is forecast to rise 0.4%. The personal spending category is forecast to grow 0.2%.
The Labor Department will also report on initial jobless claims at 12:30 GMT, followed by the Chicago purchasing managers’ index (PMI) later in the morning. The University of Michigan will also release the final estimate of its consumer sentiment index for March.
North of the border, the Canadian government will release its latest GDP report for the month of January. Canada’s economy likely grew 0.1% at the start of the year, based on a median estimate of economists.
The USD/CAD edged higher on Wednesday, with prices reclaiming the 1.2900 level. The pair had previously bottomed near 1.2825 following an impressive build-up through the first two weeks of March. At the time of writing, USD/CAD was trading at 1.2920, with traders awaiting the latest economic figures.
Europe’s common currency experienced a brisk reversal in mid-week trade, with the EUR/USD plunging almost 150 pips to 1.2324. The pair is currently trading right around those levels. The euro remains under pressure, with the bears eyeing the 1.2300 technical support level. A breakdown below this level would expose the 1.2260 region. On the opposite side of the ledger, strong resistance is forming around 1.2460.
After being rejected above 1.4200, cable backtracked on Wednesday, hitting a low of 1.4076. GBP/USD continues to trade near those levels as investors set their sights on fresh GDP figures. The pair is barely holding on to the 1.4075 support. A breakdown below this level could send cable back toward the psychological 1.4000. On the flipside, resistance is located at 1.4230.