Daily Market Commentary 13th April 2021

Equity markets pulled back from record highs, set to be dominated by inflation and growth. In the US the important CPI number will be released tonight, although this number has been sanitised to remove important inflationary metrics, but is still seen as a key indicator of growth and inflation. It is this number that will influence the Feds monetary policy, or so the Fed have stated. Japanese PPI numbers released show steep inclines in the input costs, which will inevitably translate into inflation.

EU Retail Sales remain depressed, although have improved for the last month, which is hardly surprising considering the widespread lockdowns many parts of the Continent continue to suffer. The EUR traded around 1.1900, while the GBP bounced off 1.3700, both keenly awaiting US Dollar moves in reaction to CPI and the Federal Reserve. The trade exposed commodity currencies drifted, with the AUD falling back to 0.7600, while the NZD traded 0.7020.

Markets keenly await US CPI data and first quarter earnings.