The financial markets are witnessing notable movements as the GBP/USD reaches a six-week high, nearing the 1.26 mark, while the USD/JPY stands at 152.50. These currency fluctuations come amid a backdrop of varied economic indicators from around the globe. In the United States, key data points reveal shifts in industrial production and capacity utilization, with retail sales data due later today expected to further influence market directions.
In the UK, the British pound has shown strength against the US dollar, with the GBP/USD currency pair climbing to its highest levels in six weeks. This appreciation brings the pair close to the significant 1.26 handle, reflecting positive sentiment towards the British currency amidst economic uncertainty.
Meanwhile, in Japan, the yen is trading at 152.50 against the US dollar. This exchange rate highlights ongoing challenges for the Japanese yen in maintaining its value, as global economic forces and domestic policies continue to impact the currency's standing.
The United States has reported a month-over-month increase in industrial production of 0.3%, although this marks a slowdown from the previous month's 0.9% growth. Capacity utilization has edged slightly higher to 77.7% from 77.6%, indicating a modest uptick in the use of industrial capacity. Manufacturing production, however, has seen a marginal increase of 0.1%, down from 0.6% previously, suggesting potential headwinds in the manufacturing sector.
US retail sales data, scheduled for release at 08:30 ET, is anticipated to provide further insights into consumer spending patterns and economic momentum. Market participants are closely monitoring this data, as it could serve as a catalyst for further market movements and inform future monetary policy decisions.
Across Europe, economic indicators present a mixed picture. The Netherlands reported a year-over-year increase in consumer spending for December at 1.8%, doubling the prior month's growth rate of 0.9%. However, the country's trade balance for January decreased to €10.3 billion from €12.5 billion in December, signaling potential challenges in external trade dynamics.
In Poland, preliminary consumer price index (CPI) figures for January show a month-over-month increase of 1.0%, surpassing expectations of 0.7%. On an annual basis, inflation reached 5.3%, above the projected 5.0%. These figures underscore inflationary pressures in the Polish economy, which may influence future monetary policy actions.
Turkey's Central Bank has released its February Inflation Expectation Survey, revealing a slight reduction in expected inflation to 25.3% from 25.4% previously. This decrease indicates a potential stabilization of inflation expectations amid ongoing economic challenges in Turkey.
Israel's CPI data for January reveals a month-over-month increase of 0.5%, reversing a prior decline of 0.3%. The annual inflation rate stands at 3.7%, higher than the previous estimate of 3.2%, reflecting rising prices and potential impacts on consumer purchasing power.
Norway's Wage Committee has noted a wage growth rate of 5.3% for 2024, underlining upward pressures on wages that could influence inflation and economic conditions in the country.
In China, the M2 money supply for January grew by 7.0% year-over-year, slightly below expectations of 7.3%. This slower growth rate may suggest adjustments in monetary policy or changing economic conditions impacting liquidity.
The Euro Zone's preliminary employment figures for Q4 show modest growth, with quarter-on-quarter employment increasing by 0.1%, down from 0.2% in the previous quarter. Year-over-year employment growth stands at 0.6%, compared to 1.0% previously, indicating a slowdown in job creation across the region.
Russia's narrow money supply as of February 7th is reported at RUB 18.28 trillion, marginally higher than the prior week's figure of RUB 18.27 trillion, reflecting stability in monetary aggregates within the Russian financial system.