Regional Prints Reveal Stickiness in Core Inflation

In the euro area we will get the HICP print for February. With the regional data we got yesterday (see more below) we will probably see HICP come in at 2.5% y/y or 2.6% y/y, down from 2.8% in January. That is a little higher than the 2.4% we first expected before yesterday's releases. Core inflation showed signs of stickiness, meaning that taking yesterday's releases into account the core inflation print will probably decrease to 2.9% or 3.0% from 3.3% in February.

Japanese Yen Jumpy After BoJ Member Urges Tighter Policy

After close to two weeks of little movement, the Japanese yen is showing some volatility. The yen climbed as much as 1% on Thursday before paring much of those gains. USD/JPY has reversed directions on Friday and is trading in Europe at 150.59, up 0.40%.

Time to Take a Closer Look at Altcoins?

The cryptocurrency market has corrected by 2%, dropping below $2.3 trillion in market capitalisation. Now, this looks like a technical correction, with the biggest coins pulling back from Thursday night’s highs and holding their positions at the start of Friday’s trading. Bitcoin and Ether are drawing their seventh consecutive daily growth candle, albeit at a distance from the previous two days’ highs.

EUR/USD Steady After Eurozone Inflation Dips

Inflation continues its downward trend in the eurozone. On Thursday, Germany and France saw inflation fall in February. The eurozone followed suit on Friday, as headline inflation dropped to 2.6% y/y in February, down from 2.8% in January.

Week Ahead – ECB Decision and US Payrolls to Steal the Show

Riding high on a wave of US economic resilience, the dollar is currently the best-performing major currency this year, having gained nearly 3% against a basket of currencies in a couple of months.

Weekly Economic & Financial Commentary: Economic Growth Continues Despite Downbeat Data

Economic data were downbeat this week, as downward revisions took some of the shine out of the marquee headline numbers. Durable goods orders declined, consumer confidence took a dip and the PCE deflator accelerated, bringing real personal spending into the red. Despite the somewhat weak start to Q1, economic growth continues to trek along.

Forex and Cryptocurrencies Forecast

Throughout the past week, EUR/USD has been trading within a narrow channel. News favouring the euro pushed it towards the resistance level at 1.0865, while positive developments for the dollar brought it back to the support level at 1.0800. However, neither the bulls nor the bears had enough strength to break through these defence lines.

Forward Guidance: Q4 GDP Likely Edged Higher But Not Enough to Prevent Sixth Per-Capita Decline

Canadian Q4 and December GDP growth numbers will be in focus for the Bank of Canada after a busy week where inflation numbers for January broadly surprised to the downside.

Weekly Economic & Financial Commentary: Why Put Off Until Tomorrow What Can Be Put Off Until the Next Day?

In the seven months since the Fed’s last rate hike in July, Chair Powell has cautioned the best policy prescription might be to keep rates higher for longer and that any policy decision would be dependent upon the data. Financial markets have not always taken that at face value. We unpack how the expected timing of cuts has changed.

Forex and Cryptocurrencies Forecast

Data on consumer inflation (CPI) in the US, published on February 13, exceeded expectations. The Producer Price Index (PPI) also indicated a rise in industrial inflation in the country. However, despite this, the American currency failed to gain additional support. The Dollar Index (DXY) began to decline from February 14, while EUR/USD steadily climbed higher.