Market Roundup
• US Initial Jobless Claims 249K ,236K forecast,235K previous
• US Continuing Jobless Claims 1,877K ,1,860K forecast,1,851K previous
• US Jobless Claims 4-Week Avg. 238.00K , 235.50K previous
• US Jul Manufacturing PMI 49.6 ,49.5 forecast, 51.6 previous
• US Jul ISM Manufacturing New Orders Index 47.4 ,49.3 previous
• US Jun Construction Spending (MoM) -0.3%, 0.2% forecast,-0.1% previous
•US Jul ISM Manufacturing PMI 46.8 ,48.8 forecast, 48.5 previous
•US Jul ISM Manufacturing Employment 43.4 ,49.0 forecast,49.3 previous
•14:00 US Jul ISM Manufacturing Prices 52.9 51.9 forecast,52.1 previous
Looking Ahead Economic Data(GMT)
•01:30 Australia PPI (QoQ) (Q2) 1.0% forecast,0.9% previous
•01:30 Australia MI Inflation Gauge (MoM) 0.3% previous
•01:30 Australia Home Loans (MoM) -1.0% forecast,-2.0% previous
•01:30 Australia PPI (YoY) (Q2) 4.3% previous
Looking Ahead Events and Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro declined on Thursday as the dollar gained strength following Federal Reserve Chair Jerome Powell's indications that a September interest rate cut might be considered. On the economic data front, Euro zone manufacturing activity remained mired in contraction in July. Purchasing Managers' Index (PMI) held at June's 45.8 in July. Germany's manufacturing sector continued its downturn - it fell to 43.2 in July from 43.5 in June. France’s manufacturing sector contracts slightly more than expected in July - it slid to 44.0 points in July from 45.4 in June. The Fed kept its benchmark overnight interest rate in the 5.25%-5.50% range as it ended its two-day policymaking meeting on Wednesday, but opened the door to rate cuts next month. Immediate resistance can be seen at 1.0835(50%fib), an upside break can trigger rise towards 1.0822(61.8%fib).On the downside, immediate support is seen at 1.0790(38.2%fib), a break below could take the pair towards 1.0731(23.6%fib).
GBP/USD: The pound declined against the dollar on Thursday after the Bank of England cut interest rates from a 16-year high at its latest monetary policy decision. The BoE trimmed interest rates by a quarter point to 5% from a 16-year high after a narrow vote in favour from policymakers, making it the first cut from the central bank since 2020.However, BoE Governor Andrew Bailey said that the Monetary Policy Committee would move cautiously going forward, as policymakers were divided over whether inflation pressures had eased sufficiently. The pound fell to its lowest in a month, and was last down 0.7% against the U.S. dollar. Immediate resistance can be seen at 1.2822(50%fib), an upside break can trigger rise towards 1.2857(Daily high).On the downside, immediate support is seen at 1.2729 (38.2%fib), a break below could take the pair towards 1.2691(23.6%fib).
USD/CAD: The Canadian dollar lost ground against its broadly stronger U.S. counterpart on Thursday as geopolitical tensions and weak manufacturing data globally weighed on investor sentiment. Manufacturers across the United States, Europe and Asia turned in a weak performance last month as factories grappled with tepid demand, surveys showed, raising the risk of an underpowered global economic recovery.Canadian factory data was also downbeat. The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) fell to 47.8 in July from 49.3 in June, posting its lowest level since December.Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to the outlook for the global economy.Immediate resistance can be seen at 1.3891(23.6% fib), an upside break can trigger rise towards 1.3907 (Higher BB).On the downside, immediate support is seen at 1.3855(38.2% fib), a break below could take the pair towards 1.3826 (50% fib).
USD/JPY: The dollar declined against the yen on Thursday as demand for yen increased after concerns about a widening conflict in the Middle East intensified after Hamas leader Ismail Haniyeh was assassinated in the Iranian capital. The Japanese yen edged higher, a day after a dramatic rally following the Bank of Japan’s decision to hike rates to 0.25%, the highest since 2008.The yen has gained since hitting a 38-year low of 161.96 against the dollar on July 3, boosted by interventions by Japanese authorities and by traders unwinding carry trades in which they were short the yen and long U.S. dollar assets.The dollar was last down 0.21% at 149.65 yen . It earlier reached 148.51, the lowest since March 15.Strong resistance can be seen at 151.26(38.2%fib), an upside break can trigger rise towards 153.08 (50%fib). On the downside, immediate support is seen at 149.63(Daily low), a break below could take the pair towards 149.02 (23.6%fib).
Equities Recap
Europe's STOXX 600 closed more than 1% lower on Thursday, with banks leading the sell-off after Societe Generale cut a key target for its French retail division and the Bank of England lowered interest rates.
UK's benchmark FTSE 100 closed down by 1.01 percent, Germany's Dax ended up by 2.39 percent, France’s CAC finished the day down by 2.14 percent.
U.S. stocks kicked off August sharply lower after a round of economic data on Thursday spurred concerns the economy may be slowing faster than anticipated while the Federal Reserve maintains a restrictive monetary policy.
Dow Jones closed down by 1.21% percent, S&P 500 closed down by 1.31% percent, Nasdaq settled down by 2.29% percent.
Commodities Recap
Oil pulled back after its biggest gain in more than nine months as signs of a slowing US economy countered concerns that the conflict in the Middle East may endanger supplies.
West Texas Intermediate fell 2.1%, reversing earlier gains, to settle below $77 a barrel. Crude had rallied 4.3% on Wednesday, the biggest daily gain since October.
U.S. gold futures settled 0.3% higher at $2,480.8.
