Market Roundup
•Spanish Aug Manufacturing PMI 49.9, 52.8 forecast, 53.5 previous
•Italian Aug Manufacturing PMI 53.1, 52.0 forecast, 51.9 previous
•French Manufacturing PMI Aug 49.8, 49.0 forecast, 52.4 previous
•German Aug Unemployment Rate 6.4%,6.4% forecast, 6.4% previous
•German Aug Unemployment n.s.a. 2.955M, 2.910M previous
•German Aug Manufacturing PMI 52.2, 53.0 forecast, 51.0 previous
•German Aug Unemployment 2.915M, 2.923M previous
•German Aug Unemployment Change -9K, 1K forecast, -18K previous
•Italian Jul Monthly Unemployment Rate 9.7%,9.1% forecast,8.8% previous
•EU Aug Manufacturing PMI 51.7, 51.7 forecast, 51.8 previous
•UK Aug Manufacturing PMI 55.2, 55.3 forecast, 53.3 previous
•UK Jul Mortgage Lending 2.70B, 2.80B forecast, 1.89B previous
•UK Jul BoE Consumer Credit 1.200B, 0.678B forecast, -0.086B previous
•UK Jul Mortgage Approvals 66.30K, 54.84K forecast, 40.01K previous
•UK Jul M4 Money Supply (MoM) 0.9%,1.0% previous
•EU Jul Unemployment Rate 7.9%,8.0% forecast, 7.8% previous
•EU Aug CPI (YoY) -0.2% , 0.2% forecast, 0.4% previous
•EU Aug CPI, n.s.a 104.90, 105.32 previous
•EU Core CPI (YoY) 0.4%,0.8% forecast, 1.2% previous
•EU Aug CPI (MoM) -0.4%,-0.4% previous
•French Car Registration (YoY) -19.8%, 3.9% previous
Looking Ahead Economic Data
•12:55 US Redbook (YoY) 0.6% previous
•12:55 US Redbook (MoM) 4.1% previous
•Brazil Aug Markit Manufacturing PMI 58.2 previous
•13:00 Canada Aug RBC Manufacturing PMI 52.9 previous
•13:45 US Aug Manufacturing PMI 53.6 forecast, 50.9 previous
•14:00 US Jul Construction Spending (MoM) 1.0% forecast ,-0.7% previous
•14:00 US Aug ISM Manufacturing New Orders Index 61.5 previous
•14:00 US Aug ISM Manufacturing PMI 54.5 forecast, 54.2 previous
•14:00 US Aug ISM Manufacturing Employment 45.8 forecast, 44.3 previous
•14:00 US Aug ISM Manufacturing Prices 54.0 forecast, 53.2 previous
•14:30 US Aug Texas Services Sector Outlook -26.7 previous
•New Zealand GlobalDairyTrade Price Index-1.7% previous
Looking Ahead - Events, Other Releases (GMT)
•17:00 US FOMC Member Brainard Speaks
Fxbeat
EUR/USD: The euro strengthened on Tuesday as dollar weakened to a new multi-year low as investors bet the Federal Reserve’s new policy framework meant U.S. rates would stay low for longer. The Fed’s announcement last week that it would tolerate periods of higher inflation and focus more on average inflation and higher employment has encouraged traders to sell the dollar. The euro reached as high as $1.1997 in Asian trading hours, its highest since May 2018 and leaving it up 7.5% in three months. The euro was last up 0.3% at $1.1981. 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: The British pound scaled new eight-month highs on Tuesday above $1.34 as broad-based dollar weakness deepened in the wake of the Federal Reserve’s new policy framework that suggests U.S. interest rates will remain at record lows for the foreseeable future. However, gains were capped ahead of a mid-week speech by Bank of England Governor Andrew Bailey, before the central bank’s next monetary policy announcement on Sept. 17.The pound strengthened 0.7% to $1.3459, its highest level since mid-December 2019. Immediate resistance can be seen at 1.3400 (Psychological level), an upside break can trigger rise towards 1.3526 (Dec 13th 2019 high).On the downside, immediate support is seen at 1.3305 (23.6% fib), a break below could take the pair towards 1.3181 (23.6%fib).
USD/CHF: The dollar declined against the Swiss franc on Tuesday as the Federal Reserve’s new policy framework continued to fuel bets that U.S. rates will stay lower for longer than other countries. The U.S. data calendar this week is full of important releases on manufacturing, durable goods, and employment, but positive results are unlikely to halt the dollar’s decline due to strong expectations that rates will remain extremely low. The dollar was quoted at 0.9021 Swiss francs, just a shade above the lowest in more than five years. Immediate resistance can be seen at 0.9418 (14 DMA), an upside break can trigger rise towards 0.9473 (38.2% fib).On the downside, immediate support is seen at 0.9371 (23.6% fib), a break below could take the pair towards 0.9300 (Psychological level).
USD/JPY: The dollar strengthened against the Japanese yen on Tuesday as investors as investors place bets on who will become Japan’s new prime minister. The largest faction in the ruling Liberal Democratic Party has thrown its support behind Yoshihide Suga, who currently serves as chief cabinet secretary. Suga is a close ally of Abe and is likely to continue many of Abe’s policies if he becomes the new prime minister. The Japanese yen weakened 0.04% versus the greenback at 105.94 per dollar. Strong resistance can be seen at 106.42 (50DMA), an upside break can trigger rise towards 106.86(50% fib).On the downside, immediate support is seen at 105.15 (Lower BB), a break below could take the pair towards 105.00 (Psychological level).
Equities Recap
European shares trimmed early gains on Tuesday due to losses in British blue chips and weak euro zone inflation data, while the technology sector led gains on the back of major Apple suppliers.
At (GMT 12:30 ),UK's benchmark FTSE 100 was last trading down at 1.28 percent, Germany's Dax was up by 0.38 percent, France’s CAC finished was down by 0.02 percent.
Commodities Recap
Gold prices rose on Tuesday to their highest level in nearly two weeks, as the dollar slipped to multi-year lows on bets that U.S. interest rates would stay lower for longer under the Federal Reserve’s new policy framework.
Spot gold was up 0.8% at $1,985.64 per ounce by 0644 GMT, after hitting its highest since Aug. 19 at $1,989.42 earlier in the session. U.S. gold futures rose 0.8% to $1,994.40.
Oil prices rose on Tuesday, reversing overnight losses against the backdrop of an equities bull run and a sliding U.S. dollar.
Brent crude futures climbed 61 cents to $45.89 a barrel by 1124 GMT. U.S. West Texas Intermediate (WTI) crude futures rose 53 cents, hitting $43.14 a barrel.
