Market Roundup
•German Jul Industrial Production (MoM) -0.3%, -0.5% forecast, 0.4% previous
•UK Halifax House Price Index (YoY) 11.5%, 11.8% previous
•Sweden Industrial Production (MoM) 7.8%, 0.5% previous
•French Aug Reserve Assets Total 242,728.0M, 241,892.0M previous
•Italian Jul Retail Sales (MoM) 1.3%, -1.1% previous
•Italian Jul Retail Sales (YoY) 4.2%, 1.4% previous
•EU Employment Overall (Q2) 164,098.0K, 163,412.6K previous
•EU GDP (YoY) (Q2) 4.1%, 3.9% forecast, 5.4% previous
•EU GDP (QoQ) (Q2) 0.8%, 0.6% forecast,0.5% previous
•EU Employment Change (YoY) (Q2) 2.7%, 2.4% forecast, 2.9% previous
•EU Employment Change (QoQ) (Q2) 0.4%, 0.3% forecast, 0.6% previous
• Canada Jul Trade Balance 4.05B ,3.80B forecast, 5.05B previous
•Canada Jul Imports 64.20B,64.86B previous
• US Trade Balance-70.70B, -70.30B,-79.60B previous
• US Jul Exports 68.25B,69.90B previous
• US Imports 259.30B, 340.40B previous
• US Imports 329.90B, 340.40B previous
Looking Ahead – Economic data (GMT)
• 12:55 US Redbook (YoY) 14.2% previous
• 14:00 Canada Aug Ivey PMI 48.3 forecast,49.6 previous
• 14:00 Canada BoC Interest Rate Decision 3.25% forecast,2.50% previous
Looking Ahead - Events, Other Releases (GMT)
•14:00 Canada BoC Rate Statement
• 14:00 US FOMC Member Mester Speaks
Fxbeat
EUR/USD: The euro dipped against dollar on Wednesday as U.S. economic data prompted traders to ramp up Federal Reserve rate hikes bets, pushing euro lower. A survey from the Institute for Supply Management (ISM) showed the U.S. services industry picked up in August for the second straight month amid stronger order growth and employment, while supply bottlenecks and price pressures eased. The ISM non-manufacturing PMI edged up to a reading of 56.9 last month, beating economists' expectations. The U.S. dollar index was up 0.3% on the day at 110.67, having hit a 20-year high of 110.69 earlier in the session.The euro was last down 0.27% to $0.9889. Immediate resistance can be seen at 0.9970(5DMA), an upside break can trigger rise towards 1.0077(38.2%fib).On the downside, immediate support is seen at 0.9868(23.6%fib), a break below could take the pair towards 0.9799(Lower BB).
GBP/USD: Sterling slipped against a rampaging dollar on Wednesday, lingering near 2-1/2 year lows as its brief resurgence a day earlier petered out.The pound fell as much as 0.8% at $1.14185, its lowest since March 2020.Sterling had reached as high as $1.1609 a day earlier, as media reports offered new details about how incoming Prime Minister Liz Truss is planning to tackle Britain’s growing energy crisis before losing steam amid doubts about what effect the plans would actually have. Immediate resistance can be seen at 1.1533(38.2%fib), an upside break can trigger rise towards 1.1591(9DMA).On the downside, immediate support is seen at 1.1416(23.6%fib),a break below could take the pair towards 1.1323(Lower BB).
USD/CHF: The dollar strengthened against Swiss franc on Wednesday as dollar jumped on economic data in the United States that reinforced the view that the Federal Reserve will continue with aggressive interest rate hikes. A report overnight showed the U.S. services industry unexpectedly picked up last month, underpinning the view that the economy is not in recession and giving the Fed leeway for another 75-basis-point rate rise later this month. The U.S. central bank has raised its benchmark overnight interest rate by 225 basis points in total since March to fight soaring inflation. Immediate resistance can be seen at 0.9868(23.6%fib), an upside break can trigger rise towards 0.9909(Higher BB).On the downside, immediate support is seen at 0.9812(5DMA), a break below could take the pair towards 0.9784(38.2% fib).
USD/JPY: The dollar rose against yen on Wednesday after U.S. economic data prompted traders to ramp up Federal Reserve rate hikes bets, pushing the dollar to a 24-year high against the Japanese yen. Japan's government wants to act if rapid, one-sided moves seen in the currency market recently continue, the country's top government spokesperson warned on Wednesday .The comments marked officials' latest verbal warning against the fall of the yen, which weakened beyond 144 yen per dollar after slumping about 1.5% on Tuesday. The Japanese currency, which dropped as low as 144.90 per dollar on Wednesday, has lost about 20% since the start of the year. Strong resistance can be seen at 145.94(23.6%fib), an upside break can trigger rise towards 146.06(Higher BB).On the downside, immediate support is seen at 144.08(38.2%fib), a break below could take the pair towards 142.24(50%fib).
Equities Recap
European shares fell on Wednesday, with miners leading losses, as investors fretted over global demand outlook for metals following lacklustre trade data from China, while Ubisoft slid as a deal with Tencent dampened its buyout prospects.
At (GMT 12:42),UK's benchmark FTSE 100 was last trading down at 0.89 percent, Germany's Dax was down by 0.77 percent, France’s CAC finished was down by 0.87 percent.
Commodities Recap
Gold prices edged up on Wednesday, as a rally in U.S bond yields paused, but gains were limited by sustained strength in the dollar and impending aggressive monetary policy decisions.
Spot gold was up 0.2% to $1,704.60 per ounce at 09:47 GMT, having dropped to its lowest since Sept. 1 at $1,690.10.U.S. gold futures gained 0.2% to $1,716.80.
Oil prices rose on Wednesday on threats that Russia will walk away from its energy supply contracts, reversing losses from earlier in the session when prices fell to their lowest since Russia invaded Ukraine.
Brent crude futures were up 85 cents, or 0.92%, at $93.68 a barrel by 0931 GMT, having earlier hit their lowest since Feb. 18 at $91.20.
U.S. West Texas Intermediate crude futures gained 80 cents, or 0.92%, to $87.68. The benchmark had earlier fallen to a session low of $85.08, the weakest since Jan. 26.
