(Partial Video Transcript)
Eurozone PPI data
Angeline Ong: Hello, I’m Angeline Ong and welcome to your “Look ahead” to Thursday, the 4th of April. Now, we begin with eurozone data as the producer price index that could make things a little interesting, especially given we are expecting for February at least a -0.5% month-on-month reading. What is also key is the commentary that could come out from some speakers this week as to whether or not the ECB might move ahead of the Fed in terms of cutting rates. The Fed still seemed likely to make its first rate cuts in June.
US trade balance numbers and initial jobless claims
Speaking of which, we’ve got trade balance numbers and also initial jobless claims out of the US. Just taking a look at the dollar index for you first, because this is very much tied to that key data that we are waiting for on Friday, which is the non-farm payrolls. Just taking a look at the dollar index for you first, because this is very much tied to that key data that we are waiting for on Friday, which is the non-farm payrolls.
If you search online, you’ll see an article by my colleague Chris Beauchamp indicating that he is expecting robust jobs growth in the March employment report. Now, if we do get a hot, hot, hot number, then perhaps we could see further upside for the US dollar. It has been sort of making a sideways rangebound movement there. However, we are looking very closely at the last few sessions because if I draw my line there you can see that there is a potential breakout there. We haven’t yet quite seen confirmation of that, but volumes are likely to regain more traders this coming Friday, given we’ve got that NFP number.
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