Market Roundup
• Japan Aug Manufacturing PMI 49.5,49.8 forecast,49.1 previous
• Japan Aug Services PMI 54.0,53.7 previous
Looking Ahead Economic Data (GMT)
• 07:15 French Aug Manufacturing PMI 44.4 forecast 44.0 previous
•07:15 French Aug S&P Global Composite PMI 49.1 forecast 49.1 previous
•07:15 French Aug Services PMI 50.2 forecast 50.1 previous
•07:30 German Aug Manufacturing PMI 43.4, forecast 43.2 previous
•07:30 German Aug Services PMI 52.3 forecast 52.5 previous
•08:00 EU Manufacturing PMI 45.7 forecast 45.8 previous
•08:00 EU S&P Aug Global Composite PMI 50.1 forecast ,50.2 previous
•08:00 EU Aug Services Aug PMI 51.7 forecast ,51.9 previous
•08:30 UK Aug Composite PMI 52.9 forecast, 52.8 previous
•08:30 UK Aug Manufacturing PMI: 52.1 forecast 52.1 previous
•08:30 UK Services PMI: 52.8 forecast 52.5 previous
Looking Ahead Events And Other Releases (GMT)
• No Events Ahead
Currency Foreast
EUR/USD: The euro eased slightly against dollar on Thursday after the mostly dovish U.S. Federal Reserve minutes failed lift the European currency. The minutes also revealed that some policymakers were ready to lower borrowing costs at the July meeting.The Fed seems poised to cut interest rates at its September meeting, as a "vast majority" of officials signaled this in the minutes from the July 30-31 meeting.The euro is trading at its highest level this year against the dollar, benefiting from recent upheavals in global currency markets that have weakened the dollar and halted the yen's persistent decline. Surpassing the key $1.10 mark, the euro has gained over 2.5% in August, positioning it for its strongest month since November. Immediate resistance can be seen at 1.1175(23.6%fib), an upside break can trigger rise towards 1.1200(Higher BB).On the downside, immediate support is seen at 1.1098(38.2%fib), a break below could take the pair towards 1.1070 (Aug 20th low).
GBP/USD: British pound was little changed on Thursday as investors looked ahead to UK business activity data due on Thursday and remarks from Bank of England Governor Andrew Bailey at the Jackson Hole central bankers' meeting on Friday. Federal Reserve minutes signalled that U.S. interest rate cuts are set to begin in a few weeks' time. Meanwhile, minutes validated bets on a rate cut next month and said the vast majority of policymakers felt that if data came in as expected, a September cut was likely to be appropriate. Sterling was last trading at $1.3089 after reaching $1.3113, the highest level since July 2023.Immediate resistance can be seen at 1.3107(23.6%fib), an upside break can trigger rise towards 1.3128(Higher BB).On the downside, immediate support is seen at 1.3006(38.2%fib), a break below could take the pair towards 1.2936(50%fib).
AUD/USD : The Australian dollar hovered near multi-week highs on Thursday as traders digested Federal Reserve's latest meeting and awaited Jackson Hole central bankers' meeting on Friday.Minutes from the Federal Reserve's last meeting revealed that several members favored an immediate rate cut, leading investors to anticipate a more substantial easing in September. Futures imply only 26 basis points of easing by year-end, compared to 102 basis points for the Fed. The Australian dollar was trading last at $0.6744 , after reaching a five-week high of $0.6761 overnight. The recent gains bring it closer to the July peak of $0.679 , and breaking above this level could signal a bullish move toward $0.6871. Immediate resistance can be seen at 0.6765 (23.6%fib), an upside break can trigger rise towards 0.6792(Higher BB).On the downside, immediate support is seen at 0.6720 (Aug 20th low), a break below could take the pair towards 0.6692 (38.2%fib).
USD/JPY: The dollar hovered near two week low against the yen on Thursday as investors were cautious ahead of Federal Reserve Chair Jerome Powell's comments on Friday. The Jackson Hole Economic Symposium for global central bankers begins on Thursday, with Jerome Powell scheduled to speak on Friday. Markets are anticipating that Powell's speech will provide additional clarity on the U.S. interest rate outlook. On the data front, Japan's factory activity contracted in August due to weak demand, although the decline eased. Meanwhile, the service sector grew, indicating positive conditions in some industries, according to a business survey released on Thursday. Strong resistance can be seen at 146.35(Aug 6th high), an upside break can trigger rise towards 147.36(50 %fib). On the downside, immediate support is seen at 144.42(38.2 %fib), a break below could take the pair towards 144.00(Psychological level).
Equities Recap
Japan's nikkei share average hit a three-week high on Thursday, following overnight wall street advances, with heavyweight fast retailing and technology stocks leading the gains.
Nikkei index was up 0.67% at 37,889.50 by the midday break, its highest level since Aug 1st.
Commodities Recap
Oil prices dropped for the fifth consecutive session on Thursday as investors remained concerned about the global demand outlook, even though U.S. fuel inventories had declined.
Brent crude futures edged down by 10 cents to $75.95 per barrel, while U.S. West Texas Intermediate crude futures decreased by 23 cents to $71.70
