Market Roundup
• Irish Jul CPI (MoM) 0.4%, 1.3% previous
•Irish Jul HICP (YoY) ) 9.6% ,9.6% previous
•Irish Jul CPI (YoY) 9.1%,9.1% previous
•Irish Jul HICP (MoM) 0.4%, 1.3% previous
Looking Ahead - Economic Data (GMT)
•12:30 US Jul PPI (MoM) 0.2% forecast, 1.1% previous
•12:30 US Jul Core PPI (MoM) 0.4% forecast, 0.4% previous
•12:30 US Jul PPI (YoY) 10.4% forecast,11.3% previous
•12:30 US Jul Core PPI (YoY) 7.6% forecast, 8.2% previous
•12:30 US Initial Jobless Claims 263K forecast, 260K previous
•12:30 US Jobless Claims 4-Week Avg. 254.75K previous
•12:30 US Continuing Jobless Claims 1,407K forecast, 1,416K previous
•12:30 US Jul PPI (YoY) 6.4% previous
•12:30 US Jul PPI (MoM) 0.3% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro strengthened on Thursday as dollar dipped after a softer-than-expected U.S. inflation report encouraged bets of less aggressive rate hikes from the Federal Reserve. U.S. consumer prices were unchanged in July compared with June, when they rose a monthly 1.3%. The July result was lower than expectations due to a sharp drop in the cost of petrol, causing markets to reposition on hopes that inflation was peaking. Slowing U.S. inflation may have opened the door for the Federal Reserve to temper the pace of coming interest rate hikes. Immediate resistance can be seen at 1.0355(50DMA), an upside break can trigger rise towards 1.0411(50%fib).On the downside, immediate support is seen at 1.0274(38.2%fib), a break below could take the pair towards 1.0218(21DMA).
GBP/USD: Sterling steadied against dollar on Thursday following an impressive overnight rally after U.S. inflation missed expectations, triggering a rush into risk assets. U.S. inflation data showed that consumer prices did not rise in July due to a sharp drop in the cost of gasoline, with the consumer price index increasing by a slower-than-expected 8.5%, following a 9.1% rise in June.The softer data sent risk assets skyward, as investors turned hopeful that the Federal Reserve would become less aggressive on interest rates hikes. Sterling was last trading at $1.2217, up 1.13% on the day. Immediate resistance can be seen at 1.2257(38.2%fib), an upside break can trigger rise towards 1.2299(1st Aug).On the downside, immediate support is seen at 1.2168(50%fib),a break below could take the pair towards 1.2132 (5DMA).
USD/CHF: The dollar dipped against the Swiss franc on Thursday as dollar tumbled after signs of sharply decelerating U.S. inflation prompted bets that the Federal Reserve would raise interest rates at a slower pace than previously expected. Traders priced in a 50 basis points rate hike next month, compared with the 75 bps increase that had been expected before inflation report. The dollar index remained on the back foot in early European trading hours, slipping 0.2% to 105.010, after recording its biggest daily fall in five months, of 1%, the previous day. Immediate resistance can be seen at 0.9500(38.2%fib), an upside break can trigger rise towards 0.9530(11DMA).On the downside, immediate support is seen at 0.9368 (23.6%fib), a break below could take the pair towards 0.9353 (Lower BB).
USD/JPY: The dollar declined against yen on Thursday as the U.S. July inflation reading raised expectations of a less aggressive rate hike cycle from the Federal Reserve. Figures on Wednesday showed that U.S. consumer prices were unchanged in July compared with June, a two-year rise in inflation stopped in its tracks by a drop in gasoline prices. Investors now turn to U.S. producer prices data, along with the latest jobless claims numbers, ahead of Wall Street’s open. The yen gained 0.2% to 132.615 yen per dollar. Strong resistance can be seen at 133.78(50%fib), an upside break can trigger rise towards 135.40(61.8%fib).On the downside, immediate support is seen at 132.11(38.2%fib), a break below could take the pair towards 131.00 (Psychological level).
Equities Recap
European shares were little changed on Thursday as earnings proved to be a mixed bag and German government bond yields crept higher, echoing moves in U.S. Treasuries
At (GMT 10:48),UK's benchmark FTSE 100 was last trading up at 0.25% percent, Germany's Dax was down by 0.05% percent, France’s CAC was down by 0.23% %percent.
Commodities Recap
Gold prices edged lower on Thursday from last session’s one-month peak weighed down by hawkish policy remarks by U.S. Federal Reserve officials
Spot gold fell 0.3% to $1,786.71 per ounce by 0852 GMT, after hitting its highest since July 5 at $1,807.79 on Wednesday.U.S. gold futures slipped 0.6% to $1,802.30.
Oil prices rose by over 1% on Thursday after the International Energy Agency raised its oil demand growth forecast for this year as soaring gas prices drive some consumers to switch to oil.
Brent crude futures gained $1.04, or 1.1%, to $98.44 a barrel by 0949 GMT, while U.S. West Texas Intermediate crude futures rose $1.03, or 1.1%, to $92.96.
