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Eurozone CPI Data Provides Boost | China PMI Data Continues Contraction
Published February 28, 2019
The Euro has gained significantly on the US dollar this morning, with the pair trading as high as 1.1419. In the eurozone, the major focus was on German CPI data which gained by 0.5%. As for economic data out of the US, Advance GDP is projected at 2.2%, with Chicago PMI expected to rise to 57.3 and unemployment claims forecasted to rise to 221,000.
The loonie is remaining relatively stable against the greenback today, with the pair trading at 1.3180. Later Canada will release current account deficit data, with the deficit expected to widen to $14.0 billion. This comes as Canada’s economic numbers have had mixed results, further adding to the difficulty for the Bank of Canada to justify raising rates.
In China’s latest purchasing managers index, the data indicated major activity declined further below the 50 mark, which signifies contraction to 49.2. Additionally, the report stated that all new export orders also dropped. This has market participants anxious as optimism in Chinese financial markets continues to fade.
President Trump’s discussions with North Korea concluded with an unexpected withdrawal from the negotiations after the two nations couldn’t agree on a deal to relieve Pyongyang of US sanctions in exchange for giving up much of its nuclear-weapons program.