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15 Apr 2015
Awful US industrial production adds another 'Kiss of Death' to US dollar
FXStreet (Tokyo) - The United States continues publishing weak economic numbers that are fueling speculations for the delay in the Fed's first hike rate into the end of 2015. First was NY Empire State manufacturing index and recently, the industrial production.
Earlier today, the NY empire state manufacturing index reported its first negative number since November with a reading of -1.19 for April, well below the increase to 7.00 expected by market.
Then, US industrial production declined 0.6% in March, also below expectations of -0.3% and its largest decline since October 2012. US capacity declined to 78.4%, the lower number since October 2013 and the fourth monthly decline in a row.
Previously, US reported a weak retail sales growth of 0.9% in March. Also below 1.1% expected. In addition, the FMI revised lower US GDP 2015 expectations to 3.1% vs 3.3% in January; and 3.1% in 2016 vs the 3.3% expected in January.
Will it be enough to send the US Dollar lower?
So the USD is trading under pressure as investors are assuming that poor economic data will delay the Fed's first rate hike until the Q4.
The EUR/USD is trading up above 1.0650 and it seems the pair has freeway to test yesterday's highs of 1.0705. The GBP/USD has just broken above the 1.4800 resistance; while the USD/JPY is down to 119.25.
On the other hand, US stocks are trading higher amid delayed interest rate hike speculations. Oil and gold are also positive on the day.
Earlier today, the NY empire state manufacturing index reported its first negative number since November with a reading of -1.19 for April, well below the increase to 7.00 expected by market.
Then, US industrial production declined 0.6% in March, also below expectations of -0.3% and its largest decline since October 2012. US capacity declined to 78.4%, the lower number since October 2013 and the fourth monthly decline in a row.
Previously, US reported a weak retail sales growth of 0.9% in March. Also below 1.1% expected. In addition, the FMI revised lower US GDP 2015 expectations to 3.1% vs 3.3% in January; and 3.1% in 2016 vs the 3.3% expected in January.
Will it be enough to send the US Dollar lower?
So the USD is trading under pressure as investors are assuming that poor economic data will delay the Fed's first rate hike until the Q4.
The EUR/USD is trading up above 1.0650 and it seems the pair has freeway to test yesterday's highs of 1.0705. The GBP/USD has just broken above the 1.4800 resistance; while the USD/JPY is down to 119.25.
On the other hand, US stocks are trading higher amid delayed interest rate hike speculations. Oil and gold are also positive on the day.