Market Roundup
•Canada Aug Housing Starts 260.2K,268.0K forecast, 272.2K previous
•US Sep Philly Fed Employment 26.3,32.6 previous
•US Sep Philly Fed CAPEX Index 23.60, 33.70 previous
•US Aug Retail Sales (YoY) 13.45%,15.78% previous
•Canada Jul Wholesale Sales (MoM) -2.1%,-2.0%,-0.8% previous
•US Initial Jobless Claims 332K,330K, 310K previous
•US Jobless Claims 4-Week Avg 335.75K,339.50K previous
•US Continuing Jobless Claims 2,665K,2,785K forecast, 2,783K previous
•US Aug Retail Control (MoM) 2.5%,-0.1% forecast, -1.0% previous
•US Aug Core Retail Sales (MoM) 1.8% ,-0.1% forecast, -0.4% previous
•US Retail Sales (MoM) 0.7%,-0.8%, -1.1% previous
•US Sep Philadelphia Fed Manufacturing Index 30.7,18.8, 19.4 previous
•US Jul Business Inventories (MoM) 0.5%, 0.5%, 0.8% previous
•US Retail Inventories Ex Auto 0.5%,0.5% previous
Looking Ahead –Economic Data (GMT)
• 00:30 Singapore Trade Balance 3.973B previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currency summaries
EUR/USD: The euro declined against dollar on Thursday as strong retail data boosted greenback. U.S. retail sales unexpectedly increased in August, likely boosted by back-to-school shopping and child tax credit payments from the government, which could temper expectations for a sharp slowdown in economic growth in the third quarter. Retail sales rose 0.7% last month. Data for July was revised down to show retail sales declining 1.8% instead of 1.1% as previously reported. Immediate resistance can be seen at 1.1774 (38.2%fib), an upside break can trigger rise towards 1.1805(23.6%fib).On the downside, immediate support is seen at 1.1750(50%fib), a break below could take the pair towards 1.1723 (61.8%fib).
GBP/USD: Sterling fell versus the dollar on Thursday after data showed U.S. retail sales unexpectedly increased in August, while Asian stock losses spooking sentiment also weighed on sterling. A surge in online and furniture store purchases in the United States offset a continued decline at auto dealerships, which could temper expectations for a sharp slowdown in economic growth in the third quarter. Versus the dollar, sterling fell 0.5% to a one-week low of $1.3796 at 22:00 GMT, off the 5-week high of $1.3913 touched earlier this week. Immediate resistance can be seen at 1.3812(38.2%fib),an upside break can trigger rise towards 1.3871(23.6%fib).On the downside, immediate support is seen at 1.3762(50%fib), a break below could take the pair towards 1.3714(61.8%fib).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Thursday as oil prices fell and investors weighed domestic data showing some weakening in activity. Canadian wholesale trade fell by 2.1% in July from June, the biggest decline since April last year, Statistics Canada said. The decline was driven by lower sales in the building materials and supplies subsector as lumber prices fell sharply. U.S. crude prices were down 0.6% at $72.2 a barrel, while the Canadian dollar was trading 0.1% lower at 1.2651 to the greenback, or 79.05 U.S. cents. The currency traded in a range of 1.2616 to 1.2654.Immediate resistance can be seen at 1.2690(38.2%fib), an upside break can trigger rise towards 1.2776 (23.6%fib).On the downside, immediate support is seen at 1.2617(50%fib), a break below could take the pair towards 1.2538 (61.8%fib).
USD/JPY: The dollar strengthened against yen on Thursday after data showed U.S. retail sales unexpectedly increased in August, easing some concerns about a sharp slowdown in economic growth. Retail sales rose 0.7% last month, boosted in part by back-to-school shopping and child tax credit payments, while data for July was revised down.A separate report showed U.S. initial claims for state unemployment benefits increased 20,000 to a seasonally adjusted 332,000 for the week ended Sept. 11. Economists had forecast 330,000 applications for the latest week.Strong resistance can be seen at 109.75(38.2%fib), an upside break can trigger rise towards 110.70(23.6%fib).On the downside, immediate support is seen at 109.43(50%fib), a break below could take the pair towards 109.08(61.8%fib).
Equities Recap
European stocks rose on Thursday as travel stocks snapped a four day losing streak after Ryanair lifted its long-term traffic forecast, offsetting concerns about China’s slowing economy that dragged down miners.
UK's benchmark FTSE 100 closed up 0.16 percent, Germany's Dax ended down by 0.23 percent, France’s CAC finished the day up by 0.59 percent.
Wall Street indexes fell on Thursday as an unexpected rise in retail sales pointed to resilience in the economic recovery, pushing up yields and spurring a broad move out of heavyweight technology stocks.
Dow Jones closed down by 0.18% percent, S&P 500 closed down by 0.15% percent, Nasdaq settled up by 0.13% percent.
Treasuries Recap
U.S. government bond yields ose on Thursday after a surprisingly strong reading in retail sales lifted some concerns about growth in the world's largest economy.
The yield on 10-year Treasury notes was up 2.9 basis points at 1.333%. The yield on the 30-year Treasury bond was up 1.2 basis points at 1.881%.
Commodities Recap
Gold slid nearly 3% on Thursday and silver lost over 5% as strong U.S. retail sales data boosted the dollar and gave ammunition to bets that the Federal Reserve may hasten its tapering.
Spot gold slid 2.1% to $1,755.75 per ounce by 13:52 p.m. EDT (1752 GMT), after hitting an over one-month low of $1,744.30. U.S. gold futures settled down 2.1% at $1,756.70.
Oil prices steadied on Thursday after hitting a multi-week high a day earlier as the threat to U.S. Gulf crude production from Hurricane Nicholas receded.
Brent crude ended the session up 21 cents, or 0.3%, at $75.67 a barrel. On Wednesday Brent touched $76.13, its highest since July 30.
U.S. West Texas Intermediate (WTI) ended the session unchanged at $72.61 a barrel after climbing to the highest since Aug. 2 on Wednesday.
