The Euro (EUR) edges higher against the US Dollar (USD) on Friday, with EUR/USD extending gains for a fifth straight day, as improving risk sentiment following the US-Iran ceasefire announcement offsets the impact of firm US inflation data and keeps the Greenback under pressure.
Oscar Munoz and the TD Securities US macro team judge that, although core CPI surprised on the soft side and tariff pass-through moderated, it is too early for markets to extrapolate a dovish signal.
ING’s Senior Economist Min Joo Kang notes that the Bank of Korea kept its policy rate at 2.5% and stressed a data-dependent stance as inflation pressures rise and GDP growth projections weaken.
Commerzbank’s Bernd Weidensteiner notes that U.S. inflation jumped to 3.3% in March, driven mainly by higher gasoline prices linked to the war in Iran, while core inflation remains moderate.
United States Michigan Consumer Expectations Index: 46.1 (April) vs previous 51.7
United States Factory Orders (MoM) came in at 0%, above expectations (-0.2%) in February
United States UoM 1-year Consumer Inflation Expectations: 4.8% (April) vs 3.8%
United States Michigan Consumer Sentiment Index registered at 47.6, below expectations (52) in April
United States UoM 5-year Consumer Inflation Expectation increased to 3.4% in April from previous 3.2%
Royal Bank of Canada’s (RBC) Nathan Janzen notes that Canadian labour market conditions steadied in March, with a modest employment gain and an unemployment rate holding at 6.7%.
Kevin Hassett, Director of the National Economic Council, told FOX Business on Friday that the Federal Reserve (Fed) outlook for having room to cut rates will be very solid. He also claimed the Hormuz Strait can be reopened within two months, saying they have backup plans to reopen it.
UBS economist Paul Donovan discusses how visible Oil prices at fuel stations interact with changing consumer behavior in major economies.
