Market Roundup
•Swiss Jul Retail Sales (YoY) 4.1%,1.1% previous
•Spanish Aug HICP (YoY) -0.6%,-0.6% forecast,-0.7% previous
•Spanish Aug CPI (YoY) -0.5%, -0.6% forecast, -0.6% previous
•Spanish Aug CPI (MoM) 0.0%, -0.9% forecast, -0.9% previous
•Spanish Aug HICP (MoM) 0.0% , -1.6% forecast, -1.6% previous
•Italian GDP (YoY) (Q2) -17.7%,-17.3% forecast, -5.4% previous
•Italian GDP (QoQ) (Q2) -12.8%,-12.4% forecast, -5.3% previous
•Portuguese Aug CPI (MoM )0.0%,-1.3% previous
•Italian Aug CPI (YoY) -0.5%.-0.5% forecast, -0.4% previous
•Italian Aug HICP (MoM) -1.3%,-0.7% forecast, -0.7% previous
•Italian HICP (YoY) -0.5%,0.1% forecast, 0.8% previous
•Belgian GDP (QoQ) (Q2) -12.1%,-12.2% forecast, -3.6% previous
•Portuguese GDP (QoQ) (Q2) -13.9%,-13.9% previous
•German Aug HICP (MoM) -0.2%,-0.2% forecast, -0.5% previous
•German Aug CPI (YoY) 0.0%,0.1% forecast, -0.1% previous
•German Aug HICP (YoY) -0.1%,0.1% forecast, 0.0% previous
•German Aug CPI (MoM) -0.1% , -0.2% forecast, -0.5% previous
•US Jul Building Permits (MoM) -3.0% , 5.7% previous
•US Jul IPPI (YoY) -2.3%,-3.3% previous
•US Jul RMPI (YoY) -12.1%,-13.5% previous
•US Jul RMPI (MoM) 3.0%,6.9% forecast, 7.5% previous
•French 3-Month BTF Auction -0.568%, -0.568% previous
•French 6-Month BTF Auction -0.579%,-0.606% previous
•French 12-Month BTF Auction -0.567%,-0.578% previous
Looking Ahead Economic Data
•14:30 US Aug Dallas Fed Mfg Business Index -3.0 previous
•15:00 Canada Jun Budget Balance -43.93B previous
•15:00 Canada Jun Budget Balance (YoY) -86.77B previous
•15:30 US 6-Month Bill Auction 0.120% previous
•15:30 US 3-Month Bill Auction 0.100% previous
Looking Ahead - Events, Other Releases (GMT
•14:30 US FOMC Member Bostic Speaks
Fxbeat
EUR/USD: The euro gained on Monday as dollar continued its downward march on U.S. Federal Reserve's accommodative stance last week. The Fed’s new monetary policy strategy suggested that the U.S. central bank’s key overnight interest rate, already near zero, would stay there for potentially years to come as policymakers woo higher inflation. The euro was up 0.2% at $1.1929 and on track for a 1.3% monthly gain, which would be its fourth straight month of increases. Eurozone inflation data on Tuesday and U.S. payrolls on Friday will also be closely watched. Immediate resistance can be seen at 1.1950 (23.6%fib), an upside break can trigger rise towards 1.2000 (Psychological level).On the downside, immediate support is seen at 1.1884 (Daily low), a break below could take the pair towards 1.1842 (38.2% fib).
GBP/USD: Sterling held near eight-month high on Monday as the dollar fell across the board in the aftermath of a speech by Federal Reserve Chairman Jerome Powell. The pound was last trading up more than 1% at $1.3317 , its highest since mid-December. Traders are shying away from taking strong views on the pound, however, with most investors remaining on the sidelines in thin August trading, but things may change this week when many people return from summer holidays. Immediate resistance can be seen at 1.3360 (Daily high), an upside break can trigger rise towards 1.3400 (Psychological level).On the downside, immediate support is seen at 1.3298 (23.6% fib), a break below could take the pair towards 1.3241 (5DMA).
USD/CHF: The dollar declined against the Swiss franc on Monday as last week’s U.S. Federal Reserve's accommodative stance continued to weigh on dollar. A speech last Thursday in which Federal Reserve Chair Jerome Powell outlined an accommodative shift in the central bank’s approach to inflation has weighed on the greenback as investors interpreted it as meaning rates would stay lower for longer. For the month of August, the dollar is down nearly 1.3% against a basket of currencies and about 1% against the euro, having dropped more than 10% against both since March. Immediate resistance can be seen at 0.9064 (5 DMA), an upside break can trigger rise towards 0.9115 (61.8% fib).On the downside, immediate support is seen at 0.9000 (Psychological level), a break below could take the pair towards 0.8993(23.6%fib).
USD/JPY: The dollar declined against the Japanese yen Monday after a longtime lieutenant of Shinzo Abe reportedly joined the race to succeed him as Japan’s leader. Yoshihide Suga, Chief Cabinet Secretary to Abe, would be expected to extend the fiscal and monetary stimulus that defined Abe’s term in government. Kyodo reported his intention to run for the leadership on Sunday, citing an unnamed source. Besides Japanese politics, investors are watching U.S. opinion polls this week in the wake of the political party conventions and, on the data front, the Purchasing Managers’ Index figures in China and across major economies, as well as Friday’s U.S. payrolls number. Strong resistance can be seen at 106.00 (Daily high), an upside break can trigger rise towards 106.74 (50% fib).On the downside, immediate support is seen at 105.30 (5 DMA), a break below could take the pair towards 104.87 (Lower BB).
Equities Recap
European dipped on Monday as investors bet on central banks keeping the stimulus taps open for years to come as the world tries to overcome the coronavirus crisis.
At (GMT 12:30 ),UK's benchmark FTSE 100 was last trading down at 0.61percent, Germany's Dax was down by 0.20 percent, France’s CAC finished was down by 0.40 percent.
Commodities Recap
Gold eased from its highest in nearly two weeks on Monday as the dollar recouped some of its losses and investors booked profits after a near-2% surge in the previous session, putting the metal on course for its first monthly dip in five.
Spot gold retreated 0.1% to $1,963.33 an ounce by 1008 GMT, having touched its highest since Aug. 19 at $1,976.14, and was down 0.6% over the month. U.S. gold futures fell 0.2% to $1,970.90.
Oil rose on Monday, with Brent touching the highest in five months, underpinned by a 30% cut in Abu Dhabi crude supplies and encouraging Chinese data even as global demand struggles to return to pre-COVID levels in a well supplied market.
Brent crude futures for November advanced to $46.50 a barrel by 1143 GMT up 60 cents, or 1.3%. U.S. West Texas Intermediate crude was at $43.48 a barrel, up 51 cents, or 1.2%.
