Market Roundup
•German Jul PPI (YoY) -0.8%,-0.8%forecast, -1.6% previous
• German Jul PPI (MoM) 0.2%,0.2% forecast, 0.2% previous
• EU Jun Current Account 50.5B, 37.0B forecast, 37.6B previous
• EU Construction Output (MoM) 1.75%, -0.90% previous
•EU Jul Core CPI (YoY) 2.9%,2.9% forecast,2.9% previous
•EU Jul Core CPI (MoM) -0.2%,-0.2% forecast, 0.4% previous
•EU Jul CPI (MoM) 0.0% , 0.0% forecast, 0.2% previous
•EU Jul CPI (YoY) 2.6%,2.6% forecast, 2.5% previous
•Canada Jul Common CPI (YoY) 2.2%, 2.2% forecast, 2.3% previous
•Canada Jul Core CPI (YoY) 1.7%, 1.9% previous
•Canada Jul Core CPI (MoM) 0.3%,-0.1% previous
•Canada Jul CPI (YoY) 2.5%,2.5%forecast,2.7% previous
•Canada Jul CPI (MoM) 0.4%,0.4%forecast,-0.1% previous
•Canada Jul Median CPI (YoY) 2.4%,2.5% forecast, 2.6% previous
Looking Ahead Economic Data (GMT)
•GlobalDairyTrade Price Index 0.5% previous
Looking Ahead Events And Other Releases (GMT)
•17:35 US FOMC Member Bostic Speaks
18:45 US Fed Vice Chair for Supervision Barr Speaks
Currency Forcast
EUR/USD: The euro strengthened on Tuesday after data showed Eurozone inflation increased slightly to 2.6% in July. Eurozone inflation increased slightly to 2.6% in July, up from 2.5% in June, in line with Eurostat's preliminary data and exceeding economists' initial estimates of 2.4%.This rise dampened hopes for quick rate cuts by the European Central Bank and pushed the euro to its highest level against the dollar since December 2023.Core inflation, which excludes volatile energy and food prices, stayed steady at 2.9%, indicating that underlying price pressures continue to surpass the central bank's 2% target . Immediate resistance can be seen at 1.1119(23.6%fib), an upside break can trigger rise towards 1.1135(Dec 2023 high).On the downside, immediate support is seen at 1.1074(Daily low), a break below could take the pair towards 1.1054(38.2%fib).
GBP/USD: British pound reached a one-month high against a weakening dollar and remained steady against the yen.Investors are looking ahead to business activity data due on Thursday and remarks from Bank of England Governor Andrew Bailey at the Jackson Hole central bankers' meeting on Friday. Recent official data indicated signs of improvement in the British economy, particularly in the retail sector, as the negative effects of high inflation on consumer spending begin to ease. The pound climbed 0.15% against the dollar to $1.3002 after hitting $1.3012, its highest level since July 17.Immediate resistance can be seen at 1.3047(23.6%fib), an upside break can trigger rise towards 1.3100 (Psychological level).On the downside, immediate support is seen at 1.2973(38.2%fib), a break below could take the pair towards 1.2916(50%fib).
USD/CHF: The dollar declined against the Swiss franc on Tuesday as traders waited for clues on Friday at Jackson Hole about the speed of the Fed monetary easing cycle. With the data calendar relatively light across major economies this week, all eyes are on Wednesday's release of the Fed's July meeting minutes and Chair Jerome Powell's speech at Jackson Hole on Friday for clues on the outlook for U.S. rates.Fed policymakers have in recent days signalled possible easing in September, priming markets for a similar tone from Powell and other speakers at the annual meeting of global central bankers in Jackson Hole, Wyoming. Immediate resistance can be seen at 0.8643 (38.2%fib), an upside break can trigger rise towards 0.8773(50%fib).On the downside, immediate support is seen at 0.8716(38.2%fib), a break below could take the pair towards 0.8479(Lower BB).
USD/JPY: The dollar declined against the yen on Tuesday as dollar weakened ahead of Federal Reserve Chair Jerome Powell's comments later this week. Attention is centered on Fed Chair Jerome Powell's speech at the annual Jackson Hole gathering of central bankers, with the minutes from the Fed's last meeting also drawing significant interest. Some analysts believe that the coming weeks will be crucial in determining whether the Fed will cut rates by 50-75 basis points this year or by 150 basis points or more. They note that the Jackson Hole conference presents the Fed's first opportunity to counter the expectation of a 50-basis-point cut at one of the three remaining meetings this year. Strong resistance can be seen at 147.26(Daily high), an upside break can trigger rise towards 147.97(38.2 %fib). On the downside, immediate support is seen at 145.17(23.6 %fib), a break below could take the pair towards 145.00(Psychological level).
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 marked a record high on Tuesday, as investors flocked to the safe-haven asset amid a record-breaking rally driven by expectations that the Federal Reserve will deliver an interest rate cut next month.
Spot gold was up 0.7% at $2,522.17 per ounce, as of 0907 GMT, surpassing a previous record hit on Friday. U.S. gold futures gained 0.8% to $2,561.10.
Oil prices declined on Tuesday for the third consecutive day, as Israel's acceptance of a proposal to address disputes hindering a ceasefire deal in Gaza alleviated supply concerns. Additionally, ongoing economic weakness in China continued to dampen the demand outlook.
Brent crude edged 2 cents lower, or 0.03%, at $77.64 per barrel as of 1236 GMT. Front month U.S. West Texas Intermediate (WTI) crude futures , which expire on Tuesday, inched 4 cents lower, or 0.05%, to $74.33.
