The U.S. dollar eased as some Fed members commented that the central bank should be patient in hiking interest rates. Similar views were echoed from the release of the FOMC meeting minutes on Wednesday. A weaker USD currency sent most of its peers to rally on the day.
Germany’s trade deficit was seen widening in November due to a fall in imports and exports as well. Non-adjusted trade surplus rose 20.5 billion in November as data from the Federal Statistical Office showed on Wednesday.
Inflation data from Switzerland indicated that consumer prices slowed to the lowest level in 10-months. Consumer price index increased 0.7% on the year, slowing from 0.9% in November and missed forecasts of a 0.8% increase.
From Canada, the housing starts report showed a slowdown in December but was able to beat the market expectations. Housing starts for December were seen at a seasonally adjusted annualized rate of 312,419 units, or down 4.8% from November.
The Bank of Canada held its monetary policy meeting and kept interest rates unchanged at 1.75%. The central bank reiterated that monetary policy path was dependent on incoming data and cited the weak oil prices. Growth forecasts for 2019 were lowered.
China’s inflation data released earlier today showed that headline inflation eased further, rising just 1.9% on an annualized basis in December. This was below estimates and data showed that consumer price index slowed from 2.2% in November. Producer price index data was also weaker, rising just 0.9% on the year compared to 2.7% in November.
The European trading session is relatively quiet for the most part today, save for the ECB’s monetary policy meeting minutes. The ECB minutes come from the December meeting where the ECB announced an end to its QE program.
The NY trading session will see the Fed Chair, Jerome Powell speaking alongside other Fed members including James Bullard and Evans.
