Market Roundup
•US Jul Core CPI (YoY) 3.2%,3.2% forecast, 3.3% previous
•US Jul CPI (MoM) 0.2%,0.2% forecast,-0.1% previous
•US Jul Core CPI (MoM) 0.2%, 0.2% forecast,0.1% previous
•US Jul CPI (YoY) 2.9%,3.0% forecast,3.0% previous
•US Jul CPI Index, n.s.a. 314.54, 314.18 previous
•US Jul CPI, n.s.a (MoM) 0.12% ,0.03% previous
•US Crude Oil Inventories 1.357M,-1.900M forecast,-3.728M previous
•US Crude Oil Imports -0.057M ,0.552M previous
•US Cushing Crude Oil Inventories -1.665M,0.579M previous
•US Jul Cleveland CPI (MoM) 0.3%,0.2% previous
Looking Ahead Economic Data(GMT)
•23:50 Japan GDP (QoQ) (Q2) 0.6% forecast,-0.5% previous
•23:50 Japan GDP Private Consumption (QoQ) (Q2) 0.5% forecast, -0.7% previous
•23:50 Japan GDP (YoY) (Q2) 2.1% forecast,-1.8% previous
•01:30 Australia Jul Unemployment Rate 4.1% forecast, 4.1% previous
•01:30 Australia Jul Full Employment Change 43.3K previous
•01:30 Australia Jul Employment Change 20.2K forecast ,50.2K previous
•02:00 China Jul Chinese Unemployment Rate 5.1% forecast ,5.0% previous
•02:00 China Jul Industrial Production (YoY) 5.2% forecast ,5.3% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro hit a seven-month peak against the dollar on Wednesday, as the U.S. consumer price index showed inflation is subsiding, reinforcing expectations that Federal Reserve interest rate cuts are near.U.S. CPI rose moderately in July and the annual increase in inflation slowed to below 3% for the first time since early 2021, adding to expectations for a rate cut next month, though likely less aggressive than markets hoped for. The euro was last up 0.18% against the greenback to $1.1014, surpassing the high hit during the market turmoil last week, and was trading at its strongest level since Jan. 2. Immediate resistance can be seen at 1.1025(23.6%fib), an upside break can trigger rise towards 1.1040(Higher BB).On the downside, immediate support is seen at 1.09844(Daily low), a break below could take the pair towards 1.0946(38.2%fib).
GBP/USD: Sterling failed to gain on the weaker dollar on Wednesday after data showed the rise in British consumer price inflation was smaller than expected in July.Consumer price inflation rose to 2.2% in July after two months at the BoE's 2% target, official figures showed, but fell short of economists' forecast for an annual rise to 2.3%.Services price inflation fell to 5.2% in July from June's 5.7%, lower than the Reuters poll forecast of 5.5% and the lowest since June 2022. The pound fell 0.3% to $1.2827, heading for its first session of decline in five against the dollar. It also softened against the euro, with euro/sterling trading up 0.3% at 85.69 pence. Both had been roughly flat before the data. Immediate resistance can be seen at 1.2900(23.6%fib), an upside break can trigger rise towards 1.2937(July 24th high).On the downside, immediate support is seen at 1.2812(38.2%fib), a break below could take the pair towards 1.2743(50%fib).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Wednesday, as investors betting on U.S. Federal Reserve's rate cut next month were reassured after inflation south of the border slowed to below 3% for the first time in over three years.A closely watched U.S. inflation data print showed consumer prices rebounded as expected in July, and the annual increase in inflation slowed to below 3% for the first time since early 2021, supporting the view inflation was being tamed. Investors have grappled with worries about a slowdown in the world's biggest economy, while looking ahead to the start of the Fed's easing cycle. The loonie was trading 0.1% lower at C$1.3719 to the greenback , after trading in a range of 1.3701 to 1.3721.Immediate resistance can be seen at 1.3749 (38.2%fib), an upside break can trigger rise towards 1.3798 (50%fib).On the downside, immediate support is seen at 1.3690(23.6%fib), a break below could take the pair towards 1.3655 (Lower BB).
USD/JPY: The dollar steadied against yen on Wednesday after data showed U.S. consumer prices rose moderately in July, as expected, reinforcing investor bets that the Federal Reserve could start cutting interest rates soon. The U.S. consumer price index increased 0.2% last month, after falling 0.1% in June, the Labor Department's Bureau of Labor Statistics said. In the 12 months through July, the CPI increased 2.9%, after advancing 3% in June.Markets now see a 36% chance of a 50-basis point rate cut by the Fed in September versus that of 50% prior to the release of U.S. CPI data, according to the CME FedWatch Tool. The dollar index was slightly lower at 102.57.The yen was last trading at 147.26 against the dollar. Strong resistance can be seen at 148.65(38.2 %fib), an upside break can trigger rise towards 150.00(Psychological level). On the downside, immediate support is seen at 145.98(23.6%fib), a break below could take the pair towards 144.42(Aug 7th low).
Equities Recap
Europe's main stocks index rose on Wednesday, boosted by travel and leisure and financial shares, with investors drawing comfort from fresh evidence of moderating inflation in the world's largest economy that supported an early rate-cut narrative.
The UK's benchmark FTSE 100 closed up by 0.56percent, Germany's Dax ended up by 0.41 percent, and France’s CAC finished the up by 0.79 percent.
The S&P 500 ended higher on Wednesday, stretching its winning streak to five sessions, as the latest inflation data reassured investors betting the Federal Reserve would start cutting U.S. interest rates next month.
Dow Jones closed up by 0.61 percent, S&P 500 was up 0.38 percent, Nasdaq was up by 0.01 percent.
Commodities Recap
Gold prices fell 1% on Wednesday after data showed U.S. consumer prices rebounded as expected in July, pouring water on expectations for a sizeable rate cut from the Federal Reserve next month.
Spot gold fell 1% to $2,440.47 per ounce by 01:45 p.m. EDT (1745 GMT). U.S. gold futures settled 1.1% lower at $2,479.70.
Oil prices declined on Wednesday after the U.S. Energy Information Administration reported an inventory increase, contradicting the API's weekly estimate for oil stocks
Brent crude futures were down 1% at $79.9 a barrel, while U.S. West Texas Intermediate crude fell 1.5% to $77.18.
