Market Roundup
•Canada Jul Common CPI (YoY) 2.2%, 2.2% forecast, 2.3% previous
•Canada Jul Core CPI (YoY) 1.7%, 1.9% previous
•Canada Jul Core CPI (MoM) 0.3%,-0.1% previous
•Canada Jul CPI (YoY) 2.5%,2.5%forecast,2.7% previous
•Canada Jul CPI (MoM) 0.4%,0.4%forecast,-0.1% previous
•Canada Jul Median CPI (YoY) 2.4%,2.5% forecast, 2.6% previous
Looking Ahead Economic Data (GMT)
• 23:50 Japan Adjusted Trade Balance -0.72T forecast,-0.82T previous
• 23:50 Japan Exports (YoY) 11.4% forecast, 5.4% previous
• 23:50 Japan Jul Imports (YoY) 14.9% forecast, 3.2% previous
• 23:50 Japan Jul Trade Balance -330.7B forecast, 224.0B previous
• 01:00 Australia Jul MI Leading Index (MoM) 0.0% previous
• 03:00 New Zealand Jul Credit Card Spending (YoY) -3.1% previous
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro strengthened on Tuesday after data showed Eurozone inflation increased slightly to 2.6% in July. Eurozone inflation increased slightly to 2.6% in July, up from 2.5% in June, in line with Eurostat's preliminary data and exceeding economists' initial estimates of 2.4%.This rise dampened hopes for quick rate cuts by the European Central Bank and pushed the euro to its highest level against the dollar since December 2023.Core inflation, which excludes volatile energy and food prices, stayed steady at 2.9%, indicating that underlying price pressures continue to surpass the central bank's 2% target . Immediate resistance can be seen at 1.1119(23.6%fib), an upside break can trigger rise towards 1.1135(Dec 2023 high).On the downside, immediate support is seen at 1.1074(Daily low), a break below could take the pair towards 1.1054(38.2%fib).
GBP/USD: British pound reached a one-month high o Tuesday as investors awaited revisions to U.S. payrolls data on Wednesday and Federal Reserve Chair Jerome Powell's speech to the Jackson Hole economic conference in Wyoming later in the week.Investors are also looking ahead to business activity data due on Thursday and remarks from Bank of England Governor Andrew Bailey at the Jackson Hole central bankers' meeting on Friday. Recent official data indicated signs of improvement in the British economy, particularly in the retail sector, as the negative effects of high inflation on consumer spending begin to ease. The pound climbed 0.15% against the dollar to $1.3030 after hitting $1.3053, its highest level since July 17.Immediate resistance can be seen at 1.3047(23.6%fib), an upside break can trigger rise towards 1.3100 (Psychological level).On the downside, immediate support is seen at 1.2973(38.2%fib), a break below could take the pair towards 1.2916(50%fib).
USD/CAD : The Canadian dollar gave up earlier gains against the U.S. dollar as oil prices declined and domestic inflation data bolstered expectations for a potential interest rate cut by the Bank of Canada next month. Canada’s annual inflation rate fell to a 40-month low of 2.5% in July, in line with forecasts, and core inflation measures also eased. Additionally, the price of oil, a key Canadian export, dropped to a near two-week low due to easing Middle East supply concerns and weakened fuel demand amid economic challenges in China. The loonie was trading nearly unchanged at 1.3630 per U.S. dollar, or 73.37 U.S. cents, after touching its strongest intraday level since July 11 at 1.3606. Immediate resistance can be seen at 1.3642(Daily high), an upside break can trigger rise towards 1.3660 (38.2%fib).On the downside, immediate support is seen at 1.3612 (23.6%fib), a break below could take the pair towards 1.3601 (Lower BB).
USD/JPY: The dollar declined against the yen on Tuesday as dollar weakened ahead of Federal Reserve Chair Jerome Powell's comments later this week. Attention is centered on Fed Chair Jerome Powell's speech at the annual Jackson Hole gathering of central bankers, with the minutes from the Fed's last meeting also drawing significant interest. Some analysts believe that the coming weeks will be crucial in determining whether the Fed will cut rates by 50-75 basis points this year or by 150 basis points or more. They note that the Jackson Hole conference presents the Fed's first opportunity to counter the expectation of a 50-basis-point cut at one of the three remaining meetings this year. Strong resistance can be seen at 147.26(Daily high), an upside break can trigger rise towards 147.97(38.2 %fib). On the downside, immediate support is seen at 145.17(23.6 %fib), a break below could take the pair towards 145.00(Psychological level).
Equities Recap
Europe's main stock index ended a five-day winning streak, weighed down by major energy stocks. Investors assessed domestic economic data while preparing for this week's central bankers' meeting in Jackson Hole..
The UK's benchmark FTSE 100 closed down by 1.00 percent, Germany's Dax ended down by 0.35 percent, and France’s CAC finished the down by 0.22 percent.
U.S. stocks closed slightly lower on Tuesday, ending their recent winning streak as the market awaited the Jackson Hole Economic Symposium, which begins on Thursday.
Dow Jones closed down by 0.15 percent, S&P 500 was down 0.20 percent, Nasdaq was down by 0.35 percent.
Commodities Recap
Gold prices extended their record run on Tuesday, holding firm above the key $2,500 level, driven by a weaker dollar and growing investor confidence that the Federal Reserve will likely cut interest rates in September.
Spot gold rose 0.3% to $2,510.35 per ounce by 01:44 p.m. ET [1744 GMT], after hitting an all-time high of $2,531.60 earlier in the session.U.S. gold futures settled 0.4% higher at $2,550.6.
Oil prices dropped about 1% to a two-week low as easing Middle East supply concerns following Israel’s acceptance of a proposal to address ceasefire disagreements in Gaza coupled with economic weakness in China dampened fuel demand.
Brent futures for October delivery fell 46 cents, or 0.6%, to settle at $77.20 a barrel. U.S. West Texas Intermediate (WTI) crude for September delivery fell 33 cents, or 0.4%, to settle at $74.04 on its last day as the front-month.
