- New Zealand trade deficit better than forecast
- Raft of US data later today
By David Johnson
Having spent two hours getting five miles down the road, giving up and turning back to home, I can certify that Britain doesn’t cope well with four inches of snow. Impassable roads caused by inexperienced car drivers and ambitious lorry drivers are no way to start a Tuesday.
But the world carries on and the markets are no exception…
New Zealand trade balance surprise strengthens the NZ Dollar
Monday was a little lacking in excitement, but New Zealand’s Trade Balance, released overnight, got things rolling again. The consensus forecast was that their trade deficit was going to significantly widen, but the actual number was a deficit of just NZ$566 million. That was a quarter of the forecast level and, understandably, the New Zealand Dollar strengthened on the news.
European business sentiment forecast to fall
This morning brings a veritable smorgasbord of Eurozone data, but the highlights are the Business and Consumer Confidence Indices. Not much change is expected from the Consumer Index, but the business climate and sentiment indices are expected to show poorer results than we have seen previously and the Euro is likely to suffer on the back of that.
Sterling vulnerable to Brexit commentary
The Sterling – Euro exchange rate has recovered somewhat after a few days of copious amounts of Brexit comment. There is almost no hard data for the UK economy today, but that won’t stop politicians making waves, so be ready for that.
Raft of US data expected this afternoon
There is though, a fair amount of US data in the form of the Trade Balance, Durable Goods Orders, Federal Reserve speakers and housing market data. If that doesn’t get traders active, I don’t know what would. Maybe they only needed to be reassured that their Commander in Chief would run into a live firing situation without a weapon. Good to know.
What to look out for…
There is a smattering of Japanese data overnight tonight, as well as UK Consumer Confidence and the British Retail Consortium Shop Price Index. So there will be GBP volatility overnight as well as volatility for the Japanese Yen.
And the cold weather has caused another casualty. The Dartmoor Union Inn, in the West Country, has had to postpone its charity snail race, because the cold weather has made all the competitors too sluggish (the pun was unintended but I am keeping it in). The race will still go ahead, but only when the weather improves.