US dollar was up after a large data dump.
The US Dollar (USD) is dropping somewhat in the aftermath of the European Central Bank’s (ECB) maintained rate decision. The central bank remains data dependent and provides no indications of any potential rate decreases in the foreseeable future.
ECB President Lagarde about to speak, traders had little space to examine the numbers.
Markets were braced for a communication decrease shortly. After ECB Chairman Christine Lagarde stated in Davos that a reduction around the summer is reasonable.
Moreover On the On the economic front, traders are still processing the data dump that began at 13:30 GMT. The US Gross Domestic Product for the fourth quarter outperformed estimates. Even Durable Goods witnessed an increase from its previous level, indicating. That weather conditions are having an impact on present performance. The only disappointing data appears to be the weekly Jobless Claims report. Which includes both the initial and continuing numbers.
Daily market movers: US Dollar on easy landing path.
The European Central Bank has delivered its statement where it announced that it will leave its interest rates constant and it remains data dependent. A press release with a Q&A by Christina Lagarde will follow about 14:45.
A large quantity of data was released. Around 13:30, weekly jobless claims increased from 187,000 to 202,250.
Furthermore Continuing jobless claims are expected to rise from 1,806,000 to 1,833,000.
Q4 GDP in the US is expected to be 1.5%, down from 3.3% previously.
Core GDP, as expected, remained unchanged at 2.0%.
Personal consumption expenditures have slowed from 2.6% to 1.7%.
Moreover Annual headline GDP dropped from 4.9% to 3.3%.
US durable goods orders decreased from 5.4% to 0% in December.
Orders without transportation increased from 0.4% to 0.6%.
Around 15:00 – the same time that ECB Chairman Lagarde will speak – New Home Sales for December were revealed. With a gain from 615,000 to 664,000, a positive figure.
Moreover Around 16:00, the Kansas Fed Manufacturing Activity Index for January is expected to be released. Previous was at -4, with high hopes for a comeback based on the optimistic PMI readings from Wednesday. When Manufacturing went back into growth from 47.9 to 50.3.
US Treasury Department is having a busy day, issuing a four-week bill.
The US Treasury Department is having a busy day, issuing a four week bill about 16:30 GMT and a seven-year note around 18:00 GMT.
Moreover Equity markets are up again, with China soaring after the government reduced reserve ratio requirements (RRR) for banks. Freeing up liquidity. Both the Hang Seng and the Shenzhen Index are up about 2%. European equities and US futures are stagnating, anticipating additional data signals.
Furthermore The CME Group’s FedWatch Tool reveals that markets are putting in a 97.4% chance of an unchanged rate decision on January. , with only a 2.6% chance of getting cut.
The benchmark 10-year US Treasury Note rose to 4.16% on Thursday morning, setting a new weekly high. Following the data dump at 13:30 GMT, yields fell slightly, with the 10-year trading at around 4.14%.
