Weekly Market Update 16 Apr – Continued strength in US data; EUR rebound in start of Q2
Weekly Market Update 16 Apr – Continued strength in US data; EUR rebound in start of Q2
1. The week presented yet another set of strong data releases from the US – March retail sales nearly doubled expectations as stimulus checks and vaccinations fueled robust demand. Jobless claims also dropped to the lowest weekly reading since the pandemic began as businesses start to hire. The releases drove stock markets to fresh record highs, while the dollar remained steady against a basket of currencies and Treasury prices rose.
2. The AUD gained this week, as Australia’s jobs created in March beat expectations and unemployment rate dropped 0.1%. The Reserve Bank of Australia is expected to maintain an accommodative stance as traders watch the RBA minutes and local retail sales figures to be released in the coming week.
3. The EUR started the second quarter on a stronger footing, rebounding against both the USD and GBP as market participants begin to anticipate that the ECB will scale back QE purchases in Q3. The pick up in vaccination pace in major euro-zone countries has also eased some of the pessimism built up in Q1.
