Market movers for the day ahead - Rabobank

This morning we got Chinese CPI and PPI, where the former was 1.8% y-o-y, a tick lower than expected, and the latter was 3.4%, in line with expectations and actually higher than the 3.1% seen in March, notes the research team at Rabobank.

Key Quotes

“This is arguably no longer “nice” PPI led by metals prices, that helps metal-bashing SOEs delever without lifting a finger: it’s more likely to be nasty PPI, led by higher oil prices.”

“Next up it’s UK trade data (consensus: -GBP11,300) and industrial production (consensus: 0.2%), the BOE rate decision and its quarterly Inflation Report, and then US CPI. On that key data-point the consensus is 0.3% m-o-m headline and 2.5% y-o-y, with a 2.2% core reading. Also look for real average earnings data alongside it. Anything higher than that and EM FX is not going to have a Happy Thursday. At all.”