Market Roundup
•UK Nationwide Aug HPI (YoY) 3.7%, 2.0% forecast, 1.5% previous
•UK Nationwide HPI (MoM) 2.0%,0.5% forecast, 1.7% previous
•German Jul Retail Sales (MoM) -0.9%,0.5% forecast, -1.6% previous
•German Jul Retail Sales (YoY) 4.2%,3.0% forecast, 5.9% previous
•Spanish Unemployment Change 29.8K, 10.1K forecast, -89.8K previous
•EU Jul PPI (MoM) 0.6%,0.5% forecast, 0.7% previous
•EU Jul PPI (YoY) -3.3%,-3.4% forecast, -3.7% previous
•US Mortgage Refinance Index 3,316.2, 3,423.0 previous
•US MBA Purchase Index 309.6, 310.2 previous
•US MBA Mortgage Market Index 755.1, 770.6 previous
•US MBA Mortgage Applications (WoW) -2.0%,-6.5% previous
•US MBA 30-Year Mortgage Rate 3.08%,3.11% previous
•US Aug ADP Nonfarm Employment Change 428K,950K forecast, 167K previous
•Canada Labor Productivity (QoQ) (Q2) 9.8%,1.2% forecast,3.4% previous
Looking Ahead - Economic Data (GMT)
•US Seevol Cushing Storage Report -0.010M previous
•13:45 US Aug ISM-New York Index 807.8 previous
•13:45 US US Aug ISM NY Business Conditions 53.5% previous
•14:00 US Jul Factory Orders (MoM) 9.9% previous
•14:00 US Jul Factory orders ex transportation (MoM) 4.4% previous
•14:30 US Cushing Crude Oil Inventories -0.279M previous
•14:30 US Crude Oil Inventories -1.887M forecast, -4.689M previous
Looking Ahead - Events, Other Releases (GMT)
•18;00 US Beige Book
•14:00 US FOMC Member Williams Speaks
•14:30 UK BoE MPC Member Broadbent Speaks
•14:30 UK BoE MPC Member Haldane Speaks
•16:00 US FOMC Member Mester Speaks
•18:00 US FOMC Member Kashkari Speaks
Fx Beat
EUR/USD: The euro declined on Wednesday as the dollar bounced back following strong manufacturing data. Manufacturing activity in the United States increased more than expected in August, with new orders surging. But factory employment - which was already in decline before the coronavirus because of the Trump administration’s trade war with China continued to lag, in line with economists’ view that the labour market’s recovery is running out of steam. The euro, which on Tuesday rose above $1.20 for the first time since 2018, edged back down below $1.19. At 12:30 GMT, it was at $1.1878, down 0.3%. Immediate resistance can be seen at 1.1882 (5 DMA), an upside break can trigger rise towards 1.1946 (23.6% fib).On the downside, immediate support is seen at 1.1841(38.2% fib), a break below could take the pair towards 1.1800 (Psychological level).
GBP/USD: sterling fell against a rebounding US dollar on Wednesday as traders looked to speeches from several Bank of England officials for direction. Investors will be poring over speeches form five out of the nine Bank of England's monetary policy committee members including its governor Andrew Bailey for any fresh insight into its stance on negative interest rates. The BoE said last month negative rates are part of their monetary tool box but that it saw no immediate case to cut interest rates below zero. Sterling fell 0.2% against the dollar $1.3354, having risen to an eight month high above $1.34 the day prior. Immediate resistance can be seen at 1.3479 (Sep 1st high), an upside break can trigger rise towards 1.3500 (Psychological level).On the downside, immediate support is seen at 1.3316 (5 DMA), a break below could take the pair towards 1.3176 (23.6%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Wednesday as dollar reversed overnight after US manufacturing activity increased more than expected in August. U.S. manufacturing activity accelerated to a nearly two-year high in August amid a surge in new orders, but employment continued to lag, supporting views that the labor market recovery was losing momentum. The Institute for Supply Management (ISM) said on Tuesday its index of national factory activity increased to a reading of 56.0 last month from 54.2 in July. At (GMT 12:16), Greenback gained 0.20% versus the Swiss franc to 0.9720. Immediate resistance can be seen at 0.9138 (61.8%fib), an upside break can trigger rise towards 0.9200 (Psychological level).On the downside, immediate support is seen at 0.9090 (11 DMA), a break below could take the pair towards 0.9074 (50%fib).
USD/JPY: The dollar rose against the Japanese yen on Wednesday as greenback rebounded and strong US manufacturing data raised hopes of a swifter global economic recovery. The dollar index rebounded from a two year low after data revelled that manufacturing activity in the US increased more than expected in August, which followed similar positive indicators this week from China and Europe. At (GMT 12:30), the yen was last down 1.11 % at 106.33. Strong resistance can be seen at 106.32 (Daily high), an upside break can trigger rise towards 106.81 (50%fib).On the downside, immediate support is seen at 105.96 (11DMA), a break below could take the pair towards 105.55 (38.2%fib).
Equities Recap
European shares surged on Wednesday after losing for four straight sessions, as a signs of a recovery in global manufacturing activity drove gains in chemical and industrial stocks.
At (GMT 12:30),UK's benchmark FTSE 100 was last trading up at 1.23 percent, Germany's Dax was up by 1.84 percent, France’s CAC was up by 1.92 percent.
Commodities Recap
Gold backtracked on Wednesday from a near two week high in the prior session as the dollar rebounded and strong US manufacturing data raised hopes of a swifter global economic recovery.
Spot gold fell 0.7% to $1,975 per ounce bt 1233 GMT,after hitting its highest since Aug 19th at 1,991.91 on Tuesday.US gold futures dropped 0.6% to $1,966.70.
Oil rose towards $46 a barrel on Wednesday, gaining for a third day ,supported by a report that US crude inventories fell and a survey showing stronger manufacturing raised hopes of an economic recovery from the coronavirus pandemic.
Brent crude ,the global benchmark, was up 31 cents, or 70%,at $45.89 a barrel as if 1220 GMT,climbing for a third day.US west texas intermediate rose 28cents, or 0.7% to $43.04
