Market Roundup
•Spanish Aug Services PMI 54.6 ,54.8 forecast, 53.9 previous
•Italian Aug Services PMI 51.4,52.4 forecast, 51.7 previous
•German Aug Services PMI 51.2, 51.4 forecast, 52.5 previous
•EU Aug S&P Global Composite PMI 51.0,51.2 forecast, 50.2 previous
•EU Aug Services PMI 52.9,53.3 forecast, 51.9 previous
•UK Aug Composite PMI 53.8,53.4 forecast, 52.8 previous
•UK Aug Services PMI 53.7, 53.3 forecast, 52.5 previous
Looking Ahead Economic Data(GMT)
•12:30 US Jul Exports 265.90B previous
•12:30 US Jul Imports 339.00B previous
•12:30 US Jul Trade Balance -78.80B forecast, -73.10B previous
•12:30 Canada Jul Exports 66.65B previous
•12:30 Canada Jul Imports 66.01B previous
•13:30 US Redbook (YoY) 5.0% previous
•13:45 Canada BoC Interest Rate Decision 4.25% forecast, 4.50% previous
•14:00 US Jul Durables Excluding Defense (MoM) 10.4% previous
•14:00 US Jul Durables Excluding Transport (MoM) -0.2% previous
•14:00 US Jul Factory Orders (MoM) 4.7% forecast,-3.3% previous
•14:00 US Jul Factory orders ex transportation (MoM) -0.2% forecast, 0.1% previous
•14:00 US Jul JOLTs Job Openings 8.090M forecast, 8.184M previous
•12:30 Canada Jul Trade Balance 0.70B forecast, 0.64B previous
Looking Ahead Events And Other Releases (GMT)
•14:30 Canada BOC Press Conference
•13:45 Canada BoC Rate Statement
Currency Forecast
EUR/USD: The euro inched up against the dollar following positive data on Eurozone business activity. Eurozone business activity was boosted due to the economic impact of France hosting the Olympic Games last month, was offset by concerns that the bloc's economic malaise could return once the Paralympics conclude, as demand remains weak. The HCOB composite Purchasing Managers' Index (PMI) for the Eurozone, compiled by S&P Global and considered a reliable indicator of overall economic health, rose to 51.0 in August from 50.2 in July. Although this reading indicates growth for the sixth consecutive month, it was slightly below the preliminary estimate of 51.2. The euro rose 0.1% to $1.1054, following the data. Immediate resistance can be seen at 1.1077(38.2%fib), an upside break can trigger rise towards 1.1132(Aug 20th high).On the downside, immediate support is seen at 1.1022(50%fib), a break below could take the pair towards 1.0968 (61.8%fib).
GBP/USD: The pound was little changed against the dollar on Wednesday as concerns about U.S. economic performance weighed on market sentiment ahead of key U.S. economic data releases. Investor confidence was shaken on Tuesday by weak U.S. manufacturing data, reigniting worries about the strength of the world’s largest economy. This renewed anxiety had previously triggered a global stock market sell-off in early August and intensified calls for a Federal Reserve interest rate cut later this month. At (GMT 10:48) Sterling was little changed at 1.3119, following a 0.23% decline overnight. Immediate resistance can be seen at 1.3178(38.2%fib), an upside break can trigger rise towards 1.3223(Aug 29th high).On the downside, immediate support is seen at 1.3092(38.2%fib), a break below could take the pair towards 1.3052(61.8%fib).
USD/CHF: The dollar declined on Wednesday as the Swiss franc gained strength amidst growing concerns about the U.S. economic outlook. The shift in sentiment was fueled by data showing that manufacturing activity remained in contraction, adding to apprehensions following a recent global market downturn linked to signs of softening labor demand. Traders are awaiting the release of July's Job Openings and Labor Turnover Survey at 10 a.m. ET for indications of the potential magnitude of the Federal Reserve's anticipated interest rate cut in September. Additionally, reports on July factory orders and the Fed's "Beige Book" are expected later in the day. Immediate resistance can be seen at 0.8529(38.2%fib), an upside break can trigger rise towards 0.8612(50%fib).On the downside, immediate support is seen at 0.8439(23.6%fib), a break below could take the pair towards 0.8405(Aug 29th low).
AUD/USD: The Australian dollar remained defensive against the U.S. dollar following disappointing domestic GDP data. The Australian economy grew by a modest 0.2% in the June quarter, falling short of the anticipated 0.3% increase, with a rare decline in household consumption contributing to the underperformance. Annual growth slowed to just 1.0%, a figure that would have been flat without strong government spending. This weaker-than-expected result suggests that annual growth may fall below the Reserve Bank of Australia's (RBA) forecast of 1.7% for the December quarter, bolstering the case for a potential interest rate cut.. The Aussie was struggling at $0.6713 , having shed 1.2% on Tuesday. Immediate resistance can be seen at 0.6739(38.2%fib), an upside break can trigger rise towards 0.6791(Sep 3rd high).On the downside, immediate support is seen at 0.6688(50%fib), a break below could take the pair towards 0.6626(61.8%fib).
USD/JPY: The dollar dipped against the yen on Wednesday as safe-haven Japanese yen rallied as traders ran for cover following the worst sell-off in almost a month on Wall Street. The catalyst was weak U.S. manufacturing data, which intensified concerns about a potential hard landing for the world's largest economy. Traders, already on edge ahead of Friday's crucial payrolls report, were further unsettled. The yen was about 0.04% stronger at 145.41 per dollar as of 03:35 GMT, following a 1% rally overnight against a broadly stronger dollar.Strong resistance can be seen at 147.31(38.2 %fib), an upside break can trigger rise towards 148.00(Psychological level). On the downside, immediate support is seen at 144.61(23.6 %fib), a break below could take the pair towards 143.81(Lower BB).
Equities Recap
European stocks fell to a two-week low on Wednesday, as global markets were unsettled by fears of an impending slowdown in the U.S. economy and ongoing weakness in China.
At (GMT 10:53),UK's benchmark FTSE 100 was last trading down at 0.58 percent, Germany's Dax was down by 0.78 percent, France’s CAC was last down by 0.88 percent.
Commodities Recap
Gold prices fell to a two-week low as a sharp sell-off in equities triggered a rush to cover margin calls, putting additional pressure on bullion.
Spot gold fell 0.8% to $2,473.50 per ounce as of 0928 GMT, having hit its lowest since Aug. 22. U.S. gold futures dipped 0.7% to $2,505.40.
Oil prices edged down due to worries about a sluggish global economy, weak oil demand, and the expected resolution of a dispute that had been affecting Libyan oil exports.
Brent crude futures fell 17 cents, or 0.2%, to $73.58 by 0916 GMT, after the previous session's fall of 4.9%. U.S. West Texas Intermediate crude futures were down 20 cents, or 0.3%, at $70.14
