The U.S. Dollar posted strong gains on the day on news that China had proposed a 6-year increase of U.S. goods imports as part of the trade talks. Economic data from the U.S. was relatively quiet. The industrial production figures showed a 0.3% increase on the month in December. This beat estimates of a 0.2% increase.
The UK’s retail sales report showed a 0.9% decline in sales which was slightly worse than expected. Economists forecast that retail sales would fall 0.8%. The data for November showed a 1.3% increase.
Canada’s inflation surprised to the upside. Headline consumer prices accelerated from 1.7% to 2.0% in December. On a month over month basis, consumer prices fell 0.1% compared to estimates forecasting a 0.4% decline.
The day ahead will see the markets reacting to the data from China. China’s GDP increased by 6.4% during the third quarter. Economists forecast that GDP would rise at a slower pace of 6.4% and the actual figures matched the estimates.
Fixed asset investment and industrial production figures rose 5.9% and 5.7% respectively during the period.
The data from the Eurozone will see the German producer prices index data. Headline PPI is forecast to fall by 0.1% on the month. The U.S. markets are not open on account of Martin Luther King Day.
