Global Economic News-in-Brief: Apr 8 to Apr 12 2024

Global Economic News-in-Brief: Apr 8 to Apr 12

April 10: CPI from the US 

When the Consumer Price Index (CPI) was disclosed on Wednesday at 12:30 GMT by the US Bureau of Labor Statistics, it had a rise of 0.4% instead of the estimated figure of 0.2%. It was 3.5% higher last month rather than it was in March last year and above February's 3.2% headline inflation. Since there was a rise in the values of the indicator, the US dollar quotes gathered its strength, way more than the expected figure. This faster rise in US inflation had cast doubts regarding the plan of the Federal Reserve to lower interest rates in June. Moreover, it was the third consecutive month the inflation rate is considerably over the Fed's 2% projection. This has given hints that inflation is stuck at an excessive level after steadily declining in the second half of 2023.

April 10: EIA Crude Oil Stocks Change

The weekly release of the EIA Crude Oil Stocks Change was found to be 5.841 M in place of the expected 1.211 M when it was disclosed by the US Energy Information Administration on Wednesday at 14:30 GMT. As there was a rise in the readings of the indicator, it had unfavourable impacts on the values of the American currency. The EIA Crude Oil Stocks Change that measures the number of barrels of commercial crude oil stocked by US companies affects world oil prices. The indicator will next be published on 17th Apr 2024 at 14:30 GMT.

April 11: ECB Interest Rate Decision

On Thursday, the ECB Interest Rate Decision was released and it stood at 4.5%, which was the same for the fifth straight meeting. However, the release gave the strongest indication that the rate cuts are most likely to happen. However, with inflation approaching the ECB's 2% objective, bank lending at a slowdown and the economy scarcely moving, the ECB dropped further indications about a potential cut at its next meeting. The next release of The ECB Interest Rate Decision will be made on 6th June 2024 at 12:15 GMT.

April 11: Initial Jobless Claims

The US Department of Labor published the Initial Jobless Claims on Thursday at 12:30 GMT and was found to be 211 K in place of the expected figure of 223K. This drop in the readings of the indicator will have a positive impact on the US dollar quotes. Since the Initial Jobless Claims are used for assessing the state of the labour market, the market participants who are trading in the currency will be closely watching the changes in the readings of the indicator, before taking any crucial market decisions. The indicator will next be released on 18th Apr 2024 at 12:30 GMT.

April 12: GDP from the UK

As per the latest data released by the Office for National Statistics, the UK economy expanded by 0.1% in February and it was happening for the second consecutive month. January was also amended to reflect a 0.3% gain, up from 0.2%. The release has brought certain signs that the temporary technical recession at the end of last year has ended and a recovery is taking place.