Last week, the euro plunged to a two-year low against the U.S. dolla as comments from European Central Bank President Christine Lagarde were viewed as a sign that the ECB was in no rush to raise interest rates, in contrast with an aggressive monetary policy tightening effort by the U.S. Federal Reserve
The ECB kept all of its rates unchanged, with the central bank noting that any adjustments to interest rates will take place some time after the end of the Governing Council net purchases under the APP and will be gradual. ECB said that incoming data since its last meeting reinforce its expectation that net asset purchases under its asset purchase programme should be concluded in the third quarter
The U.S. Consumer Price Index showed that prices rose 8.5% in March compared with a year ago, boosted by the soaring cost of gasoline but tempered by a moderation in prices of used cars and trucks. The core CPI fell short of estimates, landing at 6.5%.
In the upcoming week, US Housing Starts will be announced Tuesday and it is a critical indicator of economic strength in the US. The market expects housing to start to ease to 1.750 mln from 1.769 mln.
US Building Permits as another key indicator of demand in the housing market measure the change in the number of new building permits issued by the government. It is expected to come out at 1.830 mln in March.
The US Philadelphia Fed Manufacturing Index for March will be also closely followed by traders. The data is estimated to see an outcome of 20.0
Keep your eye on the EU CPI Inflation number. The CPI is expected to be 7.5% year on year basis.
18 Apr 22 (Mon)