Market Roundup
•UK Jul Core PPI Output (YoY) 1.0%,1.1% forecast,1.1% previous
•UK Jul PPI Input (MoM) -0.1%, -0.3% forecast,-0.8% previous
•UK Jul Core PPI Output (MoM) 0.0%,0.1% previous
•UK Jul PPI Input (YoY) 0.4%,-0.4% previous
•UK Jul PPI Output (YoY) 0.8%,1.2% forecast,1.4% previous
•UK Jul CPI (YoY) 2.2%,2.3% forecast,2.0% previous
•UK Jul CPI (MoM) -0.2%,0.1% previous
•French Jul CPI NSA (MoM) 0.20%,0.10% previous
•French Jul CPI (MoM) 0.2%,0.1% forecast,0.1% previous
•French Jul CPI NSA (YoY) 2.30%,2.20% previous
•French Jul HICP (YoY) 2.7%,2.6% forecast,2.5% previous
•EU Jul Inflation (YoY) 2.20%,2.00% previous
•French Jul HICP (MoM) 0.2%, 0.1% forecast,0.2% previous
•EU GDP (YoY) (Q2) 0.6%, 0.6% forecast, 0.4% previous
•EU Jun Industrial Production (YoY) -3.9%, -2.9% forecast, -2.9% previous
•EU Jun Industrial Production (MoM) -0.1%, 0.4% forecast,-0.6% previous
•EU GDP (QoQ) (Q2) 0.3%, 0.3% forecast, 0.3% previous
Looking Ahead Economic Data(GMT)
•12:30 US Jul Core CPI (YoY) 3.2% forecast, 3.3% previous
•12:30 US Jul CPI (MoM) 0.2% forecast,-0.1% previous
•12:30 US Jul Core CPI (MoM) 0.2% forecast,0.1% previous
•12:30 US Jul CPI (YoY) 3.0% forecast,3.0% previous
•12:30 US Jul Core CPI Index 318.35 previous
•12:30 US Jul CPI Index, n.s.a. 314.18 previous
•12:30 US Jul CPI, n.s.a (MoM) 0.03% previous
•14:30 US Crude Oil Inventories -1.900M forecast,-3.728M previous
•14:30 US Crude Oil Imports 0.552M previous
•14:30 US Cushing Crude Oil Inventories 0.579M previous
•15:00 US Jul Cleveland CPI (MoM) 0.2% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Forecast
EUR/USD: The euro hit a seven-month peak against the dollar on Wednesday, as traders bet U.S. consumer prices data later in the day will keep the Federal Reserve on course to cut interest rates next month.The dollar eased against a swathe of currencies ahead of U.S. inflation data at 8:30 a.m. ET (1230 GMT), which is expected to show the Consumer Price Index (CPI) increased 0.2% in July, on a month-on-month basis, following a 0.1% decline a month ago. The euro rose as much as 0.3% to $1.1029, surpassing the high hit during the market turmoil last week and was trading at its strongest level since January 2. The currency was last up 0.25% at $1.1023. Immediate resistance can be seen at 1.1025(23.6%fib), an upside break can trigger rise towards 1.1040(Higher BB).On the downside, immediate support is seen at 1.09844(Daily low), a break below could take the pair towards 1.0946(38.2%fib).
GBP/USD: Sterling dipped on Wednesday after a softer-than-expected reading on British consumer price inflation supported expectations of further interest rate cuts from the Bank of England (BoE) this year.Consumer price inflation rose to 2.2% in July after two months at the BoE's 2% target, official figures showed, but fell short of economists' forecast for an annual rise to 2.3%.Services price inflation fell to 5.2% in July from June's 5.7%, lower than the Reuters poll forecast of 5.5% and the lowest since June 2022. The pound fell 0.3% to $1.2827, heading for its first session of decline in five against the dollar. It also softened against the euro, with euro/sterling trading up 0.3% at 85.69 pence. Both had been roughly flat before the data. Immediate resistance can be seen at 1.2900(23.6%fib), an upside break can trigger rise towards 1.2937(July 24th high).On the downside, immediate support is seen at 1.2812(38.2%fib), a break below could take the pair towards 1.2743(50%fib).
USD/CHF: The dollar steadied against the Swiss franc on Wednesday as traders looked to key U.S. inflation data due later in the day. U.S. consumer prices data, due at 1230 GMT, will be parsed for clues on the health of the world's largest economy after slowdown fears hurt risk assets globally earlier this month. Investor sentiment was boosted following data released on Tuesday, which showed U.S. producer prices rose less than anticipated in July. This reinforced market view that cooling inflation will prompt the Federal Reserve to cut interest rates soon. Immediate resistance can be seen at 0.8707 (38.2%fib), an upside break can trigger rise towards 0.8773(50%fib).On the downside, immediate support is seen at 0.8606(23.6%fib), a break below could take the pair towards 0.8503(Lower BB).
USD/JPY: The dollar firmed on Wednesday but gains were limited as markets awaited U.S. inflation data that could indicate the outlook for Federal Reserve interest-rate cuts. The U.S. consumer price index (CPI) data due at 8:30 a.m. ET is expected to show headline inflation grew 3% on a yearly basis in the country, same as June.The data-heavy week is crucial for investors as they track U.S. inflation's downward path, which could signal at a larger interest-rate cut from the Federal Reserve at the September policy meeting.Market participants are united in their expectations for a rate cut, but are evenly divided between chances of a 25 basis-points (bps) reduction and or that of 50 bps . Strong resistance can be seen at 148.18(38.2 %fib), an upside break can trigger rise towards 150.00(Psychological level). On the downside, immediate support is seen at 145.43(23.6%fib), a break below could take the pair towards 144.22(Aug 7th low).
Equities Recap
European shares rose on Wednesday, as investors awaited key data from the U.S, while a raft of upbeat corporate updates lifted risk appetite.
UK's benchmark FTSE 100 was last trading up at 0.27 percent, Germany's Dax was up by 0.44 percent, France’s CAC finished was up by 0.42 percent.
Commodities Recap
Gold prices hovered near record highs on Wednesday, steered by expectations of a Federal Reserve rate cut and persistent Middle East tensions, while the spotlight shifted to U.S. inflation data.
Spot gold was up 0.4% to $2,474.04 per ounce by 1051 GMT, shy of the record high of $2,483.60 scaled last month.U.S. gold futures rose 0.2% to $2,513.20.
Oil prices were broadly steady on Wednesday, as concerns that conflict may spread in the Middle East and threaten production in one of the world's major regions for crude production eased slightly.
Brent crude futures slipped 10 cents, or 0.1%, to $80.59 a barrel by 1057 GMT. U.S. West Texas Intermediate crude futures were down 19 cents, or 0.2%, to $78.16 per barrel.
