Market Roundup
• German Sep GfK Consumer Climate -1.8, 1.2 forecast, -0.3 previous
•German Jul Import Price Index (MoM) 0.3%,0.2% forecast, 0.6% previous
•German Jul German Import Price Index (YoY ) -4.6%,-4.7% forecast, -5.1% previous
•French GDP (QoQ) (Q2) -13.8%,-13.8% forecast, -5.3% previous
•French Jul Consumer Spending (MoM) 0.5%,2.0% forecast, 9.0% previous
•French Jul PPI (MoM) 0.4%, 0.7% previous
•French CPI (MoM) -0.1%,0.4% previous
•French HICP (YoY) 0.2%,0.9% previous
•French HICP (MoM) -0.1%,0.4% previous
•French CPI (YoY) 0.2%,0.8% previous
•Italian Aug Consumer Confidence 100.8, 100.0 forecast, 100.0 previous
•Portuguese Aug Consumer Confidence -26.00, -28.30 previous
•Italian Jul PPI (MoM) 0.2%,0.5% previous
•EU Aug Consumer Inflation Expectation 16.9, 17.5 previous
•EU Aug Selling Price Expectations -2.1, -1.0 previous
•EU Aug Business Climate -1.33 , -1.80 previous
•EU Aug Business and Consumer Survey 87.7, 85.0 forecast, 82.3 previous
•EU Aug Industrial Sentiment -12.7, -14.3 forecast, -16.2 previous
•EU Aug Consumer Confidence -14.7, -14.7 forecast, -14.7 previous
•Belgium Aug CPI (YoY) 0.82%,0.73% previous
•Belgium Aug CPI (MoM) 0.06%, 0.22% previous
• Canada GDP Annualized (QoQ) (Q2) -38.7%, -39.6% forecast, -8.2% previous
•Canada GDP (QoQ) (Q2) -11.5%,-2.1% previous
•Canada GDP Implicit Price (QoQ) (Q2) -1.20%, 0.50% previous
•US Jul Personal Income (MoM) 0.4%, -0.2% forecast, -1.1% previous
•US Jul Personal Spending (MoM) 1.9%, 1.5% forecast, 5.6% previous
•US Jul Real Personal Consumption (MoM) 1.6%, 5.2% previous
•Canada GDP (YoY) (Q2) -13.01%, -0.91% previous
•US Jul PCE price index (MoM) 0.3%, 0.4% previous
•US Jul PCE Price index (YoY) 1.0, 0.8 previous
•US Jul Core PCE Price Index (MoM) 0.3%, 0.5% forecast, 0.2% previous
•US Jul Core PCE Price Index (YoY) 1.3%,1.2% forecast, 0.9% previous
•US Jul Retail Inventories Ex Auto 0.6%, -0.8% previous
•US Jul Goods Trade Balance -79.32B, -70.99B previous
•Canada June GDP (MoM) 6.5%, 5.6% forecast,4.5% previous
•US Wholesale Inventories (MoM) -0.1%,-1.4% previous
Looking Ahead - Economic Data (GMT)
•13:15 US Aug Chicago PMI 52.0 forecast, 51.9 previous
•14:00 US Aug Michigan Inflation Expectations 3.0% forecast, 3.0% previous
•14:00 US Aug Michigan 5-Year Inflation Expectations 2.70% forecast,2.60% previous
•14:00 US Aug Michigan Current Conditions 82.5 forecast, 82.8 previous
•14:00 US Aug Michigan Consumer Expectations 66.5 forecast, 65.9 previous
•14:00 US Aug Michigan Consumer Sentiment 72.8 forecast, 72.5 previous
•15:00 Canada Jun Budget Balance (YoY) -86.77B previous
•15:00 Canada Jun Budget Balance -43.93B previous
•16:00 US Jul Dallas Fed PCE 1.70% previous
•17:00 US U.S. Baker Hughes Oil Rig Count 183 previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro rose on Friday as dollar dipped as dollar dipped following a landmark speech by U.S. Federal Reserve chief Jerome Powell. Investors bet that the U.S. Federal Reserve's new strategy to lift inflation and spur growth will keep its interest rates lower for longer. The dollar fell to as low as 92.418 versus a basket of currencies while Powell was speaking, then quickly recovered. But it started to slide again overnight, extending losses in early London trading. At 1017 GMT, the dollar index was at 92.425, down 0.6% on the day, having fallen even further than during the initial sell-off on Thursday. Immediate resistance can be seen at 1.1919 (Daily high), an upside break can trigger rise towards 1.1947(23.6% fib).On the downside, immediate support is seen at 1.1837 (38.2% fib ), a break below could take the pair towards 1.1815(Daily low).
GBP/USD: Sterling touched an eight-month high versus the U.S. dollar purely on the greenback’s weakness in the aftermath of Federal Reserve Chairman Jerome Powell’s speech at Jackson Hole, which steered expectations of lower interest rates for longer. A renewed weakness in the British pound is not out of the woods, as a mix of Brexit uncertainty, coronavirus fears and dismal economic data could well mean a return to a continuous decline in sterling. The pound was last trading hands at $1.3276, up 0.6% on the day, having rallied earlier to $1.3290, its highest since mid-December. Immediate resistance can be seen at 1.3318 (Daily high), an upside break can trigger rise towards 1.3423 (Dec 16th 2019 High).On the downside, immediate support is seen at 1.3200 (Psychological level), a break below could take the pair towards 1.3171(5 DMA).
USD/CHF: The dollar declined against the Swiss franc on Friday as dollar was weighed down by the prospect of lower U.S. interest rates for a long time. Fed Chairman Jerome Powell on Thursday said the central bank would adopt an average inflation target - meaning rates are likely to stay low even if inflation rises a bit in future. The dollar index fell 0.7% en route to its worst week in a month. Immediate resistance can be seen at 0.9070 (Daily high), an upside break can trigger rise towards 0.9147 (38.2% fib).On the downside, immediate support is seen at 0.9023 (Lower BB), a break below could take the pair towards 0.9000(Psychological level).
USD/JPY: The dollar declined against the Japanese yen on Friday as yen rose on news that Prime Minister Shinzo Abe will resign. The yen, which had fallen to a two-week low of 106.945 yen per U.S. dollar, strengthened after the news, as investors grew cautious about the possibility of a shift away from Abe’s expansionary economic policy “Abenomics”.It strengthened to as much as 105.5 by 0933 GMT. It then eased slightly and was at 105.685 by 1009 GMT, with the dollar down around 0.8% versus the yen. Strong resistance can be seen at 105.53(38.2% fib), an upside break can trigger rise towards 106.00 (21 DMA).On the downside, immediate support is seen at 105.15 ( Daily low ), a break below could take the pair towards 104.91 (Lower BB).
Equities Recap
European stocks slipped on Friday as investors dumped this year’s outperformers including technology and healthcare stocks and bid up banking shares after the U.S. Federal Reserve unveiled its new policy framework.
At (GMT 12:30 ),UK's benchmark FTSE 100 was last trading up at 0.05%percent, Germany's Dax was down by -0.20 percent, France’s CAC was last up by 0.10%percent.
Commodities Recap
Gold rose almost 2% on Friday, on course for its first weekly gain in three, as the dollar retreated and the U.S. Federal Reserve’s stance reinforced expectations of a prolonged low interest rate environment.
Spot gold was up 1.7% at $1,961.11 per ounce by 1149 GMT, taking gains this week to more than 1%. U.S. gold futures rose 1.9% to $1,969.40.
Oil prices edged lower on Friday as storm Laura past the heart of the U.S. oil industry in Louisiana and Texas without causing any widespread damage to refineries.
Brent crude futures for October, set to expire on Friday, was down 7 cents to $44.99 a barrel by 1154 GMT.
U.S. West Texas Intermediate (WTI) crude futures were down 3 cents to $43.01 a barrel.
