Headlines: USD/JPY nudges back above 146.00 mark in back and forth trading todayWhat are the main events for today?BOJ expected to raise rates again by the end of this year – pollJapan observes record number of foreign visitors in JulyUS MBA mortgage applications w.e. 16 August -10.1% vs +16.8% prior Markets: CAD leads, JPY lags […]

Unveiling Market Dynamics: Today’s Stock Heatmap Analysis Monday’s stock market offered a vibrant tableau of sector performance as evidenced in the latest heatmap snapshots. Tech juggernauts like Nvidia and Apple saw modest changes, indicating a cautious sentiment among traders, while consumer cyclical stocks like Amazon rallied, showcasing sector resilience. 🔍 Detailed Sector Overview Technology –

Economists widely estimated that US non-farm payrolls would be revised lower from the prior numbers showing 2.9 million jobs added in the year ending in March, or 242,000 per month. Goldman Sachs had floated a range of 600K-1M job losses. One critical caveat is that these revisions are based on a reconciliation with initial jobless

Labor market continues to loosen, come into better balanceUnemployment rate is up but still historically lowWage gains remain above pace consistent with our goalShould incoming data show inflation is moving sustainably toward target, it will become appropriate to gradually lower rates to avoid becoming overly restrictiveWill remain cautious in my approach to any change in

While we had a data release from Japan earlier the yen doesn’t need much to move around. Japan – July exports +10.3% y/y (expected +11.4%) & imports +16.6% y/y (expected +14.9%) The volatility recently continued today, albeit in a reduced range than we are accustomed to: The reverberations of the Bank of Japan rate hike,

On the day: Stoxx 600 +0.3%German DAX +0.5%Francis CAC 40 +0.5%UK’s FTSE 100 +0.1%Spain’s IBEX +0.2%Italy’s FTSE MIB +0.7% Yesterday halted a nice winning streak but the bulls were back in charge today: This article was written by Adam Button at www.forexlive.com.

It’s tough to find consistent signals on the economy at the moment. There are certainly signs of weakening in things like housing and rate-sensitive areas like autos but the retail good sector looks strong, as highlighted by Walmart last week. This week’s market is just as confusing. Equities are ripping and the market is acting

Australia approved plans for a massive solar and battery farm that would export energy to Singapore announced environmental approvals for the US$24 billion SunCable project in Australia’s remote northproject will include an array of panels, batteries and, eventually, a cable linking Australia with Singaporehoped that energy production will begin in 2030project will provide four gigawatts

The US BLS was scheduled to publish benchmark revisions to non-farm payrolls at 10 am ET here: https://www.bls.gov/web/empsit/cesprelbmk.htm That hasn’t updated but we’re watching closely. It’s rare to have a hiccup in the release schedule so it’s not clear what’s going on. However a separate report that covers the same timeline was released — the

The bleed lower in the US dollar has extended and the euro is taking full advantage. It’s just edged above the December 2023 high of 1.1139 and is now trading at the highest since July 2023. The latest move is almost entirely driven by the dollar side of the equation as it sinks across the

While exports did not jump by as much as expected they grew much faster than in June. helped by a weak yen and a pickup in the auto sectorand encouraging sign of sustained economic recoveryoffset though by shipment volumes falling 5.2% y/y, the sixth consecutive month of declines Imports beat. Exports to: China +7.2% y/ythe

Prior +16.8%Market index 225.8 vs 251.3 priorPurchase index 130.6 vs 137.7 priorRefinance index 754.4 vs 889.3 prior30-year mortgage rate 6.50% vs 6.54% prior After the surge in mortgage applications in the week before that, we are seeing things moderate back last week. The surge in activity in the week before owes much to the sharp

Fundamental Overview The USD continues to remain under pressure amid positive risk sentiment and the imminent rate cuts from the Fed which should help global growth. These are generally bearish drivers for the greenback. In fact, the appreciation of the GBP has been mostly driven by the US Dollar side of the equation. The market

Yesterday broke an 8-day rally in the S&P 500 but futures are pointing to a 0.2% rebound today. A notable chart I highlighted yesterday was an 8-day rally in a rebound from a sharp selloff in the index in 2023. After a small setback in mid-November, it continued higher through year end. Momentum can be

Prior was +1357K Details: Gasoline -1606K vs -933K expectedDistillates -3312K vs -215K expectedRefinery utilization +0.8% vs +0.3% expectedProduction mbpd 13.4mbpd vs 13.3mbpd prior API data late yesterday showed: Crude +347KGasoline -1043KDistillates -2247K These numbers are bullish at the margin and oil was already bouncing back today after four days of losses. This article was written

Fundamental Overview The USD continues to remain under pressure amid positive risk sentiment and the imminent rate cuts from the Fed which should help global growth. These are generally bearish drivers for the greenback. In fact, the appreciation of the EUR has been mostly driven by the US Dollar side of the equation. The ECB

Prior was 0.0%Prices y/y +2.9% vs +2.8% y/y Raw materials price index: m/m % vs -1.4% priory/y % vs +7.5% prior I noted yesterday how we’re entering a period with oil prices down $10-$20 y/y. This article was written by Adam Button at www.forexlive.com.

Yesterday’s Canada CPI was light and since it was already released, I wouldn’t expect any market reaction from today’s PPI and raw materials price index. The main event of the day comes at 10 am ET (1400 GMT) with BLS payrolls revisions for the year ending in March. I wrote a preview of it yesterday.

It’s going to be another boring day on the data front as the only notable release will be the FOMC Minutes later in the day. It’s not a market-moving event as it’s three weeks old news and the market is waiting for the Flash PMIs due tomorrow and Fed Chair Powell speech on Friday. This

The bounce comes as buyers look to be holding at the 145.00 mark, at least for the time being. That being said, even with the push back above 146.00, it doesn’t mean much from a technical perspective. Looking at the near-term chart, sellers are still well in control. That as price action rests below both

Bloomberg is gated, in brief from the interview with Katsunobu Kato, a potential candidate for the country’s next prime minister: Japan should continue to aim for a world where interest rates and prices keep moving “It’s clear that we have to head in this direction” where prices and rates aren’t stagnantcaution is still needed for

Via the RBNZ: Seasonally adjusted total billings in New Zealand remained at $4.3 billion in July, -0.4% m/m-3.% y/y Unadjusted total credit card advances outstanding decreased to $6.0 billion in July-24. After seasonal adjustment, total advances outstanding were $6.1 billion, 1.2% lower than in July-23. Total credit limits were $21.0 billion (not seasonally adjusted) in

That’s an unusual thing for a central banker to say but the market is pricing in a 93% chance of a cut on Sept 12. This article was written by Adam Button at www.forexlive.com.

Via Bloomberg overnight was the report on moves to further prop up, or try to, China’s troubled property sector. While Bloomberg is gated, the basic gist is that China is considering a new strategy to support its struggling real estate market by allowing local governments to use special bonds to purchase unsold homes. Such bonds

July 30 – 31 Federal Open Market Committee (FOMC) meeting minutes are due on Wednesday 21 August 2024. Of more focus this week, of course, is Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium on Friday. At the July meeting the FOMC kept the Federal Funds rate unchanged between 5.25%-5.50%, a widely expected

A note from JP Morgan argues that the recent volatility spike has dealt a major blow to the FX carry trade, which had been the dominant FX strategy over the past 12-18 months. JPM point to unwinding of carry trades, first triggered by the MXN sell-off post-elections and then accelerated by the sharp JPY rally,

Trading in financial markets is often perceived as a high-stakes game of numbers, charts, and quick decisions. However, if you look closer, trading is much more than just buying low and selling high, it’s an intricate art that parallels the disciplines, strategies, and mentalities found in sports. The art of trading will be of particular

The number of foreign visitors for business and leisure was 3.29 million last month, surpassing the previous record in June of 3.14 million. The yen currency has strengthened considerably in the last month but that might not put off travelers immediately. That considering some travel plans are made months in advance. This article was written

31 of 54 (57%) of economists see the BOJ raising rates again by year-end14 of 22 (64%) of economists forecast the BOJ to raise rates in December8 of 22 economists (36%) forecast the BOJ to raise rates in October The median prediction for interest rate is to end the year at 0.50%, which is 25

Fundamental Overview The USD continues to remain under pressure amid positive risk sentiment and the imminent rate cuts from the Fed which should help global growth. These are generally bearish drivers for the greenback. In fact, the recent strong appreciation of the NZD has been mostly driven by the US Dollar side of the equation.

Fundamental Overview The USD continues to remain under pressure amid positive risk sentiment and the imminent rate cuts from the Fed which should help global growth. These are generally bearish drivers for the greenback. In fact, the appreciation of the AUD has been mostly driven by the US Dollar side of the equation, although it

German DAX futures flatUK FTSE futures +0.1% There’s not much in it with S&P 500 futures also seen up just 0.1%. US indices snapped a run of eight straight days of gains yesterday but the decline was marginal at worst. It doesn’t take away whatsoever from the stunning rebound since all the panic from 5

JP Morgan in Australia update on the NZD after the Reserve Bank of New Zealand rate cut. Bottom line is that most NZD weakness related to the RBNZ’s recent rate cut may have run its course. Notes that NZD has been resilient since the cut: improving global investor sentiment centred on expectations of a determined

Even on a losing day US stocks were impressive. Some decent sell orders hit the market midway through the day and it briefly looked like stocks could roll over. However the market steadied itself and rebounded to only small declines, at least outside of the Russell. S&P 500 -0.2%Nasdaq Comp -0.3%DJIA -0.2%Russell 2000 -1.0%Toronto TSX

China Automobile Manufacturers Association: firmly opposes EU Commissions final draft on high tariffs on Chinese made electric vehicleshopes EU will adhere to dialogue and cooperation with China, maintain fair non-discriminatory market environmenttariff decision brings enormous risks and uncertainty for Chinese firms’ operations and investment in EU China has overcapacity across a range of manufactured goods,

Adam posted on this on Tuesday: Eyes on Wednesday’s non-farm payrolls benchmark revisions Adam included the estimate from Goldman Sachs of between 600K and 1mn jobs to be cut from the data. And JP Morgan of 360K jobs. Economists will argue about this data, all the caveats, but the concern is that if the revision

Fundamental Overview After the breakout of the 2480 resistance, gold eventually extended the gains into the 2532 level as the momentum buyers piled in. In the big picture, gold should remain supported as real yields fall as we head into the Fed’s easing cycle, but in the short-term strong US data might provide pullbacks along

The Japanese yen remains a little swingy but less so than in the days before at least. The rest of the major currencies bloc is trapped in narrow ranges as we look to European trading later. So far on the day, the changes are light as seen with dollar pairs below. In general, the dollar

Eurostoxx +0.2%Germany DAX +0.2%France CAC 40 +0.2%UK FTSE +0.1%Spain IBEX flatItaly FTSE MIB +0.3% Once again, it’s not leaving much to work with for now. And we’ll likely have to wait until US trading again for the action to pick up. S&P 500 futures are also little changed, up just 0.1% currently. This article was

Potential candidate for Japan PM supports BOJ continuing to hike ratesNew Zealand data – July card spending -3.8% y/y (prior -3.1%)China automaker lobby warns of enormous risks and uncertainty from EU tariffs on EVsUS non farm payrolls revisions data due Wednesday – could wipe off 1mn jobsFederal Open Market Committee (FOMC) July meeting minutes will

The numbers via oilprice.com on Twitter: — Expectations I had seen centred on: Headline crude -2.7 mn barrelsDistillates -0.2 mn bblsGasoline -0.9 mn — This data point is from a privately-conducted survey by the American Petroleum Institute (API). It’s a survey of oil storage facilities and companiesThe official report is due Wednesday morning US time.

I find it tough to get excited about benchmark revisions but tomorrow’s non-farm payrolls re-think is getting plenty of attention. Economists at Goldman Sachs think between 600,000 and 1 million jobs could be shed in the revision, raising new questions about the strength of the jobs market just ahead of Jackson Hole. The Bureau of

The People’s Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead. USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.CNH is the offshore yuan. USD /CNH has no restrictions on its trading range.A significantly stronger or weaker rate than expected

There is just one to take note of on the day, as highlighted in bold. That being for EUR/USD at the 1.1100 level. There has been expiries here all through the week and the ones today will still have some slight influence on price action. For one, it could act as a bit of an

You would think that stock market bulls would throw in the towel today as markets turned south. The S&P 500 is riding a five-day winning streak, so there would be no shame in taking some profit or not buying the smallest dip. But the bulls have stepped in again. The S&P 500 has mostly erased

People’s Bank of China USD/CNY reference rate is due around 0115 GMT. The People’s Bank of China (PBOC), China’s central bank, is responsible for setting the daily midpoint of the yuan (also known as renminbi or RMB). The PBOC follows a managed floating exchange rate system that allows the value of the yuan to fluctuate

Dr Hans Kluge from the World Health Organization says that Mpox is “not the new Covid”, because authorities clearly know how to control its spread. The BBC has the report if you want to read it. It adds: There is still a lot to learn about the new variant, experts say, but it may be

Justin and I will be in Sydney next week for the Finance Magnates Pacific Summit. Its happening Tuesday 27 August to Thursday 29 August! Both of us were lucky enough to get to speak with Louise Bedford from Talking Trading about the summit. Louise will be there too, and her presentation alone will be worth

Canada July CPI 2.5% versus 2.5% expectedFed’s Bowman: Some recent further progress on lowering inflation. Remain cautious on cutsUS job seekers rise to highest since 2014 in NY Fed surveyPhilly Fed non-manufacturing employment index falls to the lowest since the pandemicNew Zealand GDT price index +5.5%Canada July new housing price index +0.2% vs -0.2% prior

From the report: The six-month annualised growth rate in the Westpac–Melbourne Institute Leading Index ticked back up to +0.06%.The last nine months has seen the Index growth rate hover in the –0.3 to +0.2% range, a clear improvement on the twelve months prior which saw much weaker reads in the –0.5 to –1% range. However,

Bank of Japan Governor Ueda will speak in Japan’s parliament on Friday. HSBC says this poses a risk for the yen, saying “any dovish cues” from Ueda could “work against the JPY”. HSBC refer to yen-dovish remarks from Deputy Governor Uchida a couple of weeks back: ForexLive Asia-Pacific FX news wrap: BOJ’s Uchida triggered a

Economist Ed Yardeni wrote an opinion piece for Dow Jones news (via Market Watch). Here is a brief summary of the key points from the article: The BLS household survey showed 1.54 million U.S. workers were impacted by weather in July, up from 280,000 in June. The drop in unemployment claims after Hurricane Beryl hit

Bank of America notes that European investors, who were previously driving the USD rally earlier in 2024, have now shifted to short USD positions. This shift coincides with a recent EUR/USD breakout above 1.10. Key Points: Shift in European Investor Behavior: Earlier in 2024, the USD rally was significantly driven by demand from investors outside

There is not much here to shift around FX too much. I expect the swinging yen to keep on … swinging. It doesn’t need outside catalysts right now. This snapshot from the ForexLive economic data calendar, access it here. The times in the left-most column are GMT. The numbers in the right-most column are the

Good morning, afternoon and evening all. Any charts, technical analysis, trade ideas, thoughts, views, ForexLive traders would like to share and discuss with fellow ForexLive traders, please do so: This article was written by Eamonn Sheridan at www.forexlive.com.

WTI crude oil futures settled 33-cents lower to $74.04 after falling as low as $73.50. It’s the third day of losses and fifth in the past six days and also runs counter to growing optimism about the US and global economy, particularly in stock markets. Then again, it’s tough to say which is the chicken

The Philly Fed released its latest non-manufacturing survey earlier today and most of the numbers weren’t headline grabbing. The main index was strong with a rise to +8.3 from -10.0 but there was a sharp break lower in full-time employment, particularly in firms that were planning to cut full time employment. The drop raises some

China’s benchmark lending rates remained unchanged in August – recapFederal Reserve speakers Tuesday include Bostic (on payments) and Barr (on cybersecurity)AUD – weekly survey shows inflation expectations are at a 30-month lowRBA minutes: Possible cash rate will stay steady for an extended periodPBOC sets USD/ CNY central rate at 7.1325 (vs. estimate at 7.1317)People’s Bank

Reports on a note from Goldman Sachs on Monday (US time) on the prospects for US equities to rally over the next four weeks: pain trade for equities is highercite trend-following rule-based systematic funds have shifted from $450 billion long in July to $250 billion long currently and are in the process of re-leveragingand, further,

Credit Agricole sees potential for a rally in USD/JPY this week, driven by market reactions to Fed Chair Jerome Powell’s upcoming speech at Jackson Hole, as investors position around US-Japan rate differentials. Key Points: Current Market Positioning: Investors are currently betting on a further narrowing of the US-Japan rates differential, anticipating a dovish message from

The pound is higher for the fourth straight day today and reached a high of 1.3052. That’s the best level since July 2023 as it narrowly rose above the July 2024 high of 1.3044. It’s since pulled back below that figure but not by much. Cable has climbed in 8 of the past 9 trading

One way to look at the drop in Treasury yields is that it’s signalling trouble in the US economy but with stocks working on an 8-day winning streak, that’s tough to square. Maybe the answer is more-simple: The market sees no recession but steady rate cuts and a return to the low-inflation/cheap-money era. That’s a

Fed Chair Powell’s annual Jackson Hole remarks have become must-watch events for traders, often sparking significant market moves. Goldman Sachs is out with a quick rundown of the past 6 years and how it affected the front end of the bond market (the dollar generally follows front-end yields). Key takeaways: Powell’s tone has swung from

Shares of home-improvement store Lowe’s initially fell more than 1% after the company cut its annual forecast but have since rebounded and are trading higher by 1%. Shares of Home Depot reacted similarly this month after cutting guidance. The company now sees a 3.5-4% drop in comp sales this year compared to 2-3% previously. It’s

The latest New Zealand dairy auction results are out and prices rose 5.5% to $3920/MT. Whole milk powder prices rose 7.2%. This article was written by Adam Button at www.forexlive.com.

A spokesman for the Islamic Revolutionary Guard in Iran today laid out an uncertain timeline for an attack on Israel in response to the assassination of Hamas’ political leader in Tehran. “Time is on our side and it’s possible that the waiting period for this response will be long,” Islamic Revolutionary Guard Corps Spokesman Ali

The euro continues to march higher as it ticked above 1.11 for the first time since late December. Given that December move was something of a low-liquidity squeeze, you have to go back to July 2023 to see these levels. Unfortunately, this is more of a US dollar story than a positive narrative on anything

Goldman Sachs favors a tactical approach to buying EUR/USD on dips, with a focus on broader USD weakness driving the pair higher despite a lack of strong economic support for the euro. Key Points: Tactical Buy Levels: Traders are looking to add to EUR/USD positions on dips back towards 1.1030, with a target of reaching

People’s Bank of China USD/CNY reference rate is due around 0115 GMT. The People’s Bank of China (PBOC), China’s central bank, is responsible for setting the daily midpoint of the yuan (also known as renminbi or RMB). The PBOC follows a managed floating exchange rate system that allows the value of the yuan to fluctuate

Prior +2.5%Core CPI +2.9% vs +2.9% y/y prelimPrior +2.9% No changes to the initial estimates and this just keeps a September rate cut in play for the ECB after the pause in July. This article was written by Justin Low at www.forexlive.com.

S&P 500 futures are 1 point higher today and Nasdaq futures are also higher. Yesterday, they capped of an eight-day rally that’s added about 8%. The last time the S&P 500 climbed for eight days in a row was November 2023. That was capped by a decent decline on the ninth day and then a

Overview of Today’s Stock Market Today’s stock market presents a complex tapestry, characterized by significant divergences across different sectors. A closer look at the stock market heatmap reveals nuanced performances, with notable dynamics in the technology and healthcare sectors overshadowing mixed sentiments elsewhere. 🔍 Sector Analysis Technology: It’s a mixed bag in the technology sector

Looking at the breakdown, surpluses were recorded for goods (€39 billion), primary income (€14 billion) and services (€12 billion). These were partly offset by a deficit for secondary income (€14 billion). This article was written by Justin Low at www.forexlive.com.

The STOXX 600 was riding in a five-day winning streak and traded higher at times today but couldn’t hang on. Stoxx 600 -0.5%German DAX -0.4%Francis CAC 40 -0.3%UK’s FTSE 100 -0.9%Spain’s IBEX -0.2%Italy’s FTSE MIB -0.5% This article was written by Adam Button at www.forexlive.com.

Prior CHF 6.18 billion; revised to CHF 6.12 billion The Swiss trade surplus narrowed in July as exports fell by 0.5% while imports expanded by 6.1% on the month. This article was written by Justin Low at www.forexlive.com.

The Treasury market continues to sniff out pain and rate cuts in the US economy and that’s spilling into USD/JPY. The pair fell 25 pips in a quick move down to 145.75 after breaking 146.00. Despite the turnaround in risk sentiment, US 2s remain near the low yields of the year and are treatening a

The index increased by 0.1% year over year in JulyPrices were up in 10 of the 27 census metropolitan areasThey were unchanged in 13 and declined in the remaining 4 largest month-over-month increases in July were recorded in Calgary, Edmonton, Kelowna and ReginaThe largest monthly price declines in new home prices in July were recorded

The New York Fed yesterday released its quarterly survey of the employment market and there was a notable softening. Job seekers jump to 28.4% in July 2024, highest since March 2014The increase was most pronounced among respondents older than age 45, those without a college degree, and those with an annual household income less than

It’s hard to find a more cynical place than the financial markets. Every time there is a catastrophe somewhere in the world, investors rush to look for opportunities to make money. This was the case after the 9/11 attacks in the United States, the Fukushima catastrophe, the Arab Spring, and, of course, the wars between

The dollar is in a sluggish spot, as it comes under renewed pressure to start trading this week. EUR/USD broke out to its highest since December, now eyeing the highs then at 1.1123-39. Meanwhile, AUD/USD also extended its upside run to the highest in a month above the 0.6700 mark. USD/JPY remains a focus as

Fundamental Overview The USD continues to remain under pressure amid positive risk sentiment and the imminent rate cuts from the Fed which should help global growth. These are generally bearish drivers for the greenback. In fact, the recent appreciation of the CAD has been mostly driven by the US Dollar side of the equation. The

Germany DAX +0.1%France CAC 40 +0.1%UK FTSE -0.3%Spain IBEX +0.2%Italy FTSE MIB +0.2% S&P 500 futures are up 0.1% but overall, there isn’t too much drive in the risk mood on the day. That isn’t giving much for broader markets to work with either as such. A typical summer’s day. This article was written by

Gold is a timeless, resilient precious metal boasting a rich and colourful history, one that societies have coveted for centuries. Primarily mined using underground tunnels or open pits, China remains the leading gold producer in the world, closely followed by Russia and Australia. Given its value and finite nature, gold remains among the most popular

China has stopped publishing daily data on foreign fund flows into its stock market publishing of daily data on foreign fund flows into its stock market stopped on Mondaythe move is seen as an attempt to prop up sentiment amid ongoing outflows, at at the very least an effort to reduce volatility from high-frequency dataYear-to-date

The Canadian dollar is riding the wave of broad US dollar weakness at the moment in a move to 1.3610 but it will have its own reasons to move at the bottom of the hour. That’s when the July CPI report will be released. Expectations are for y/y inflation to continue to fall, this time

Bank of America expects the upcoming Jackson Hole symposium to be a pivotal moment for US rates, with Fed Chair Powell likely signaling a future rate cut while maintaining flexibility. The risks, however, lean toward a more hawkish tone, potentially strengthening the USD. Key Points: Jackson Hole Focus: The symposium is expected to be a

European Central Bank Governing Council member Olli Rehn, governor of the Finnish central bank There are no clear signs of a pick-up in the manufacturing sector.Industrial production may not be as temporary as assumed.The recent increase in negative growth risks in the Euro area has reinforced the case for a rate cut at the next

Prior was +2.7%CPI m/m +0.4% vs +0.4% expectedPrior m/m -0.1% Core measures CPI Bank of Canada core y/y 1.7% vs 1.9% priorCPI Bank of Canada core m/m +0.3% versus -0.1% priorCore CPI m/m SA +0.1% vs +0.1% priorMedian 2.4% versus 2.6% priorTrim 2.7% versus 2.9% priorCommon 2.2% versus 2.3% prior USD/CAD was trading at 1.3602

The precious metal caught an upside break at the end of last week, pushing past its previous triple-top pattern. That culminated in a break to fresh record highs above $2,500. And that is where we are seeing price continue to hold so far this week. There was a bit of a challenge yesterday but buyers

Will the Jackson Hole event be bearish for stocks?Bundesbank says wage growth has slowed down in Q2Eurozone July final CPI +2.6% vs +2.6% y/y prelimDollar on troubled shores so far this weekEurozone June current account balance €51.0 billion vs €36.7 billion priorEuropean equities open marginally higher to kick start the dayWhat are the main events

The European session today is once again empty on the data front. We will just get the Final Eurozone CPI report, which is not a market moving release as the market moves on fresh news. In the American session, the main highlight will be the Canadian CPI report although it’s unlikely to change much in

There is just one to take note of on the day, as highlighted in bold. That being for EUR/USD at the 1.1100 level. The pair also has a large set of expiries at 1.1000 but that should not factor much into play given the dollar weakness so far this week. As such, the ones at

Fundamental Overview The Russell 2000 last Thursday managed to break above a key resistance zone following strong US Jobless Claims and Retail Sales data. The market continues to fade the “growth scare” we got at the beginning of August and it’s now looking forward to the Fed’s rate cuts. In fact, the rate cuts into

The People’s Bank of China left its Loan Prime Rates (LPRs) unchanged, as was expected. 1-year LPR at 3.35% 5-year LPR at 3.85% Both were lowered by 10bp in July. Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages. — The reference

I’ve been seeing many posts about the stock market reaction to the last two Powell’s speeches at the Jackson Hole Symposium. While it’s true that the market didn’t perform well in the following couple of months, the context today is much different. In 2022, it goes without saying why it was different. The Fed was

Fed’s Kashkari: It is appropriate to have debate on whether to cut rates in SeptemberFed’s Waller doesn’t comment on economy or monetary policyGold climbs back above $2500. What’s next and what to watch forOil falls for fourth time in five trading days. What’s next Markets: Gold down $4 to $2503US 10-year yields down 2 bps

Fundamental Overview Yesterday, the yen strengthened across the board in the Asian session without any clear catalyst. It looks like it was more of a technical move as the price broke through a key trendline rather than something fundamental. On the other side, there might be some pre-positioning into a dovish Powell speech on Friday

The German central bank noted that negotiated wage growth in Q2 was seen at 3.1%, as opposed to the 6.2% reading in Q1. However, they note that they expect a “temporary rise” in German inflation towards the end of the year due to base effects. That just means that the economic recovery will be delayed

The ANZ-Roy Morgan Australian Consumer Confidence Index survey includes a question on inflation expectations: For this week they dropped to a a 30-month low of 4.7% down from 5.1% last weekwhile the 4 week moving average is down 0.1 to 5.0% ANZ analysis: Notably, inflation expectations fell to 4.7 per cent, their lowest level since

Fundamental Overview Copper has been on a sustained downtrend since reaching its peak in May. More recently we’ve been seeing some life coming back into the market with an increase in the bullish momentum last week as the mining giant BHP said on last Tuesday that it had started removing workers on strike at its

German DAX futures +0.1%UK FTSE futures -0.2% This follows from the gains yesterday but the overall mood today remains more tentative once again. That at least in the early stages. US futures are also flattish, so that’s not leaving much for market players to work with at the moment. This article was written by Justin

These don’t look to be of too much interest to traders, but perhaps we’ll get something pertinent in any Q&A? 1735 GMT / 1335 US Eastern time: Federal Reserve Bank of Atlanta President Raphael Bostic participates in a fireside chat before the hybrid “Innovating for Inclusion” Payment Inclusion Forum at the Federal Reserve Bank of

Reserve Bank of Australia August meeting minutes The Reserve Bank of Australia considered a case to raise rates but decided that a steady outcome better balanced the risks.The RBA mentioned that the cash rate might have to stay steady for an “extended period.”The RBA members agreed it is unlikely that rates would be cut in

It was another impressive day for US equities. Futures were flat early today but a steady trickle of bids was the story throughout the day followed by a flash of buying late. S&P 500 +1.0%Nasdaq Comp +1.4%DJIA +0.6%Russell 2000 +0.9%Toronto TSX Comp +0.2% These are the eighth consecutive gains in the S&P 500 and Nasdaq

The People’s Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead. USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.CNH is the offshore yuan. USD /CNH has no restrictions on its trading range.A significantly stronger or weaker rate than expected

Prior +0.2% Looking at the breakdown, there were increases in the price for intermediate goods (+0.2%) and energy (+0.5%). Besides that, the price for capital goods and durable consumer goods were flat on the month. Meanwhile, the price for consumer goods in general fell by 0.1% in July. If you strip out energy, producer prices

Last month the People’s Bank of China were in a rate cutting mood: cut repo rates on July 22: PBoC announces cut to 7-day reverse repo rate to 1.70% from 1.80%at the same time the Bank lowered collateral requirements for medium term lending facility loans On the same day they cut LPRs: China cuts 1

Major currencies might not be too active so far today but they are slowly leaning in the direction of a softer dollar. The greenback rebounded after the US retail sales data last week. However, that quickly faltered on Friday and the selling has carried over to the new week. Here are some key happenings in

Canada is set to release its Consumer Price Index (CPI) update for July on Tuesday: Due at 0830 Eastern time The m/m expected is higher while the y/y is a touch lower. There will be focus on ‘core’ rates, that have accelerated in the past two months. What does it mean for the Bank of

Earlier: People’s Bank of China leaves Loan Prime Rates (LPRs) unchanged ICYMI: China’s benchmark lending rates remained unchanged in August both 1 year and 5 year LPRs were cut by 10 basis points in Julyone-year loan prime rate stayed at 3.35%the five-year rate was maintained at 3.85% Last month China’s central bank confirmed several reforms

This as confirmed by Trump himself here: “Comrade Kamala Harris has just informed us that she will NOT do the FoxNews Debate on September 4th. I am not surprised by this development because I feel that she knows it is very difficult, at best, for her to defend her record setting Flip-Flopping on absolutely everything

Exports 6.15bn Prior 6.04bn Imports 7.11bn prior 5.45bn NZD/USD little changed on the data: This article was written by Eamonn Sheridan at www.forexlive.com.

Oil squeezed higher last Monday on indications of extremely crowded positions on the short side. That surely left shorts feeling the pain in what was the fourth straight day of gains. But it’s come undone quickly as oil bears continue to point to soft Chinese demand as a catalyst for falling prices. WTI is down

Given the slump in the US dollar there are some thoughts about that the People’s Bank of China reference rate setting for the yuan might have to invert. For many, many months the PBoC have set the USD/CNY reference rate well below the prevailing market rate in order to support the yuan. The gap between

Good morning, afternoon and evening all. Any charts, technical analysis, trade ideas, thoughts, views, ForexLive traders would like to share and discuss with fellow ForexLive traders, please do so: This article was written by Eamonn Sheridan at www.forexlive.com.

USD/JPY traded to early highs around 146.85 before dumping to 145.85 lows. There hasn’t been fresh news nor data from Japan, yen crosses don’t need any of that to persist in volatility. USD/JPY is back on approach to its earlier highs as I update. The background to all this the Bank of Japan eyeing further

Federal Open Market Committee (FOMC) forecast via Reuters polling: 101 analysts polled55 forecast federal funds rate cuts by 25 basis points in September, November and December34 predict two rate cuts this year1 respondent forecast only one rate cut11 have tipped cuts by 100bps or more in the upcoming three meetings Says Barclays: “The basis for

Yen volatility is set to continue again today. USD/JPY has dropped 40 points or so in past minutes. There are no fresh catalysts. This article was written by Eamonn Sheridan at www.forexlive.com.

A bit of a rehash from a JP Morgna note on Monday, reiterating bullishness, citing recent economic data, earnings reports, the prospect of a more accommodating Federal Reserve. upside appears to be more muted than when we adopted this stance earlier this yearbut there remains material upside JPM note risks: Japan’s inflation datageopolitical developments that

I posted on the PBoC and RBA yesterday. ICYMI … Its rate-setting day from the People’s Bank of China and we will also get the minutes from the most recent Reserve Bank of Australia meeting. The PBoC cut rates in July, surprising some in the market. People’s Bank of China cut repo rates on July

MUFG highlight both the Federal Open Market Committee (FOMC) minutes (July 31 meeting) due on Wednesday 1800 GMT / 1400 US Eastern time And Federal Reserve Chair Powell speaking at Jackson Hole on Firday 1400 GMT / 1000 US Eastern time MUFG flag the risk of lower US yields if the FOMC/Powel is/are dovish, could

We may soon be talking about the highest levels in the euro since July 2023. I wrote about the euro trade on Friday and why it’s been a quiet winner. “I find it hard to chase anything in Europe but there are a nice series of higher lows and it would be easy enough to

US equities are at the highs of the day across the board and it’s being led by a wide range of names today, including consumer-sensitive American Airlines and Expedia. The Russell 2000 is leading the way with a 0.5% and the Nasdaq isn’t far behind. For the Russell, it continues to chew into the opening

In general, I think politics are wildly overrated a source of investing opportunities, particularly elections. Promises are often made by politicians but rarely fulfilled and in a three-tier system like the US, it’s rare to get enough alignment to craft game-changing policies. At the moment, Kamala Harris is leading Trump 55-45 on PredictIt and she

The Australian dollar has added 50 pips today in the third day of gains. It’s at the highest since July 18 and also at levels that would be the highest since January excluding the June-July ramp. What’s particularly impressive is that AUD is rallying despite all the poor indications from China, including the recent plunge

The thing about this week is that there won’t be as much key risk events on the calendar as last week. And that means market players will not have too much to work with for the time being. Fedspeak is the main thing to be mindful about, as traders digest the key US data from

German DAX futures -0.2%UK FTSE futures -0.2% S&P 500 futures are also fairly sluggish, down 0.1% currently. In other markets, 10-year Treasury yields are down 2.5 bps to 3.867% and USD/JPY is now sinking much lower to a low of 145.20 on the day. It keeps with the move from earlier here, with the dollar

Fundamental Overview The Nasdaq finally erased the entire drop from the last ISM Manufacturing PMI as the market faded the “growth scare”. The first catalyst was the good US Jobless Claims on the 8th of August as that quelled the fears on a deteriorating labour market triggered by the weak NFP report. Last week, we

Introduction Today’s stock market presents a mixed landscape with noteworthy movements across technology and energy sectors, along with subtle shifts in consumer cyclical stocks. As we delve into the heatmap, let’s explore these trends, decipher sector performances, and discuss strategic moves for investors. Sector Overview Technology Sector: A mixed bag here with minor declines in

The Forex market is an international marketplace where, unlike the conventional stock markets, various types of currencies are exchanged 24 hours a day across different time zones. Contrary to the traditional stock exchange, Forex is decentralized—it does not bear physical confinement to an exchange. Online is how Forex operates, and it is run by banks,

Headlines: It’s a slower start to the new week so farWhat are the main events for today?Weekly update on interest rates expectationsFed’s Kashkari: It is appropriate to have debate on whether to cut rates in SeptemberSNB total sight deposits w.e. 16 August CHF 464.9 bn vs CHF 463.1 bn prior Markets: JPY leads, USD and

Data last week showed UK core inflation softening a touch: UK July CPI +2.2% vs +2.3% y/y expectedTraders now see BOE decision in September to be a coin flip UBS on what they expect from the Bank of England ahead, in summary: the latest UK inflation print shows the rate is still near the BoE’s

Fed’s Waller does not comment on the economy or monetary policy in his welcoming remarks at the 2024 Summer Workshop on Money, Banking, Payments, and Finance, Washington, D.C. This article was written by Giuseppe Dellamotta at www.forexlive.com.

MUFG emphasizes that this week’s US yield and USD movements will largely hinge on two critical events: the release of the FOMC minutes from the July 31 meeting and the upcoming Jackson Hole Symposium, particularly Fed Chair Powell’s speech. Key Points: FOMC Minutes: The FOMC meeting on July 31 marked the first time since ending

Down the elevator and back up the escalator: On the day: Stoxx 600 +0.6%German DAX +0.6%Francis CAC +0.8%UK’s FTSE 100 +0.8%Spain’s Ibex +1.4%Italy’s FTSE MIB +0.7% The round trip is nearly completed. This article was written by Adam Button at www.forexlive.com.

This post on X by @lisaabramowicz1 just crossed my timeline and reminded me of the posts I’ve been seeing right after the events at the start of August. In fact, one of the things people have been pointing to when we got the growth scare was the widening of the US credit spreads. A “credit

Good morning, afternoon and evening all. Any charts, technical analysis, trade ideas, thoughts, views, ForexLive traders would like to share and discuss with fellow ForexLive traders, please do so: This article was written by Eamonn Sheridan at www.forexlive.com.

Today the calendar is empty on the data front and the only highlight will be Fed’s Waller speech at 13:15 GMT/09:15 ET. Christopher Waller is a key Fed governor because he’s been a “leading indicator” for changes in Fed’s policy. We already got Fed’s Daly over the weekend saying that the time to consider trimming

I coughed coffee all over my keyboard when I saw this from Adam over the weekend: Next week doesn’t start until Thursday On Tuesday from the Asia time zone we have rate-setting day from the People’s Bank of China and also minutes from the most recent Reserve Bank of Australia meeting. The PBoC cut rates

Japan’s national and Tokyo governments are seeking a 700 billion yen ($4.7 billion) valuation for Tokyo Metro Preparing to list the subway operator as early as October-end Info via Reuters citing three unnamed sources would be Japan’s biggest IPO in roughly six yearsthe two governments own 100% of Tokyo Metromeeting of brokerages planned within a

The breakout in gold is looking increasingly secure. A pullback to $2486 today has been bought and it’s now trading back above $2500. Everyone’s watching China right now. On Friday, a Reuters report indicated fresh quotes for domestic banks. They had halted the quotas earlier, around the time that the PBoC stopped buying. Could the

It’s not just USD/JPY that is on the move so far today. The dollar is also marked lower against other major currencies, with EUR/USD being of particular interest as well. The pair is trading up slightly to 1.1040 after the Friday gains and looks poised to settle on a break to its highest since December

Balance of risks have shifted more towards labour market and away from inflationInflation is making progressBut labour market is showing some concerning signs He’s reiterating what we already have come to know in recent weeks. They’ve been teeing up a rate cut in September and this just contributes to that narrative. We’ll see if Powell

Morningstar is an American financial services firm. From Morningstar chief US economist Preston Caldwell: The CPI report “provides further support for aggressive Fed rate cuts beginning in September.” he sees a 25bps cut to start, which will take Fed Funds to 5.00-5.25%”While the rise in the unemployment rate is flashing alarm signs, other labor market

1315 GMT / 0915 US Eastern time: Federal Reserve Board Governor Christopher Waller gives opening remarks before the Summer Workshop on Money, Banking, Payments, and Finance hosted by the Federal Reserve Board of Governors Waller tends to be forthright with his views on where policy is heading. I expect him to be a little more

The US dollar is at the lows of the day against the euro, pound and commodity currencies. That’s a continuation of the price action from late last week. The dollar ran higher on retail sales and WMT commentary last week but has slowly retraced (and more). That’s a concerning sign for the dollar bulls as

People’s Bank of China USD/CNY reference rate is due around 0115 GMT. The People’s Bank of China (PBOC), China’s central bank, is responsible for setting the daily midpoint of the yuan (also known as renminbi or RMB). The PBOC follows a managed floating exchange rate system that allows the value of the yuan to fluctuate

It’s been an uneventful pre-market. There was some slight weakness in the Asian session, but eventually the market recovered everything in the European session and it’s now trading near a key resistance at 5,600. This article was written by Giuseppe Dellamotta at www.forexlive.com.

As is usual for a Monday morning, market liquidity is very thin until it improves as more Asian centres come online … prices are liable to swing around, so take care out there. Indicative rates, not a lot changed from late Friday levels: EUR/USD 1.1028USD/JPY 147.65GBP/USD 1.2935USD/CAD 1.3690AUD/USD 0.6665NZD/USD 0.6045 This article was written by

Fundamental Overview Last Friday, gold had a very positive day despite a lack of catalysts, which culminated in a breakout of a key resistance that’s been holding the precious metal in a range for a month. In the big picture, gold should remain supported as real yields fall as we head into the Fed’s easing

The fall today also sees sellers resume near-term control, with a push below its 100 and 200-hour moving averages as well. The former is at 147.67 while the latter is at 147.28. Hence, the drop now back towards near 146.00 sees sellers back in charge of the near-term bias. Going back to the daily chart,

Monday’s calendar is very light, with no significant economic events scheduled. On Tuesday, Canada will release its inflation data and Wednesday will feature the release of the FOMC meeting minutes, which could shed more light on the likelihood of seeing a first rate cut in September. Thursday will bring a series of flash manufacturing and

USD/JPY losses accelerate on the day, under 146.70 nowFederal Reserve Board Governor Christopher Waller speaks on MondayFinland central bank governor & ECB governing council member Olli Rehn speaks late MondayJapan’s LDP will hold its leadership election on September 27Japan seeking a 700 billion yen valuation for Tokyo Metro, listing as early as end-OctoberFederal Reserve Chair

Federal Reserve Governor Christopher Waller is giving “Welcoming Remarks” at the 2024 Summer Workshop on Money, Banking, Payments, and Finance, Washington, D.C. He’s been a key Fed governor because he’s been a “leading indicator” for changes in Fed’s policy. He might comment on monetary policy but I’m not sure if the markets are going to

I’m hosting a special webinar at 9 am ET (1300 GMT) on ‘7 Common Trading Traps and How to Avoid Them’ It’s an especially notable topic right now given the moves in the yen and equities this month. Register here This article was written by Adam Button at www.forexlive.com.

The Japanese owner of 7-Eleven has been approached with what would be the largest-ever takeover of a Japanese company. The deal speaks to foreign companies seeking to exploit the depressed yen. In this case, the suitor is Canadian company Couche-Tard, the owner of Circle K convenience stores. The target is Seven & i Holdings Co

A diary note for politics in Japan. It’ll be interesting to get the new PM’s take on Bank of Japan policy. Still a ways off. – Fuji News Network (FNN) with the info. Japan’s parliament. This article was written by Eamonn Sheridan at www.forexlive.com.

The weakness n the USD restarted from where we left it last Friday as the market remains in a risk-on mood and looks forward to the coveted Fed’s rate cuts. We don’t have much on the agenda today as there’s just Fed’s Waller speaking at 13:15 GMT/09:15 ET and then we get the Conference Board’s

Fundamental Overview The S&P 500 finally erased the entire drop from the last ISM Manufacturing PMI as the market faded the “growth scare”. The first catalyst was the good US Jobless Claims on the 8th of August as that quelled the fears on a deteriorating labour market triggered by the weak NFP report. Last week,

Rate cuts by year-end Fed: 95 bps (71% probability of 25 bps rate cut at the upcoming meeting) ECB: 66 bps (94% probability of rate cut at the upcoming meeting) BoE: 42 bps (69% probability of no change at the upcoming meeting) BoC: 75 bps (96% probability of rate cut at the upcoming meeting) RBA:

I posted earlier on the lack of any obvious catalyst for the gains in JPY: USD/JPY extending its losses today That’s still the case although I am beginning to see some generic ‘hedge funds now bullish yen’ tweets and what have you. The USD/JPY slide began on Friday and its extended today. USD weakness is

Federal Reserve Bank of Chicago President Austan Goolsbee spoke in an interview with CBS’ Face the Nation on Sunday: US credit conditions are tight and are getting tighterno certainty the Fed will cut interest rates next month, but not doing so could damage the labour market “When you set a rate high like we have

The Japanese yen is the main mover so far on the day as it extends the bounce back from Friday. USD/JPY is down 0.9% to 146.30 with the greenback holding a little lower across the board as well. The pair is facing a bit of a stern rejection from the 38.2 Fib retracement level of

Domestic sight deposits CHF 457.2 bn vs CHF 455.5 bn prior Swiss sight deposits increased slightly in the past week but nothing too notable. The figure still sits within the range of recent months, so it isn’t anything that jumps out of the page. This article was written by Justin Low at www.forexlive.com.

There is just one to take note of on the day, as highlighted in bold. That being for AUD/USD at the 0.6675 level. It isn’t one that is technically significant but it could anchor gains for a bit before rolling off later in the day. The pair is in a breakout mood amid a more

Via Reuters a snippet from the Commonwealth Bank of Australia on Powell speaking at Jackson Hole: “Markets will be laser focused to what Powell has to say at the end of this week, and on that, I think it will be a great opportunity for Powell to either endorse or push back market pricing,” “I

UK estate agents are reporting more buyer interest following the Bank of England interest rate cut The Bank of England began cutting interest rates from a 16-year high on August 1 Rightmove survey showed: Also: buyer enquiries in August were 19% higher than a year earlier, compared with an 11% annual increase in July Rightmove

The Quasimodo pattern is an established formation that some price action traders favour over ‘traditional’ support and resistance methods. Although the pattern’s origin is unknown, some believe it draws its name from the fictional character Quasimodo: the main character of the novel, The Hunchback of Notre Dame, with the pattern’s shape portraying Quasimodo’s physique. You

more to come For the April to June quarter machinery orders fell 0.1% q/q The outlook for the July to September quarter is for +0.2% q/q — The core machinery orders data is a highly volatile series its used as a leading indicator of capital spending in the coming six to nine months This article

The unwinding of the carry trade may have seen yen shorts imploded. And that led to the sharp plunge in USD/JPY in early August. However, the event also kicked off a strong hint of risk aversion and traders turned to bonds for safety as well. It didn’t really help when market players also panicked in

China’s latest economic data is confirming that the world’s second-largest economy continues to struggle. Hitting its 5% growth target may require more drastic measures, fueling expectations for further government intervention. July’s data showed: home prices dropping at the fastest rate in nine yearsindustrial output slowingrising unemploymenteven where data beat forecasts, underlying issues persist, such as

Eurostoxx flatGermany DAX -0.1%France CAC 40 flatUK FTSE -0.1%Spain IBEX +0.2%Italy FTSE MIB +0.3% This comes with US futures also sitting marginally lower as the session gets underway. There’s not a whole lot to work with in terms of risk sentiment, as traders have to look to themselves to drive any moves. Fedspeak will be

ING’s chief international economist James Knightley spoke with news wire Dow Jones / Market Watch: Powell is likely to highlight that inflation is moving in the right directionGiving the Fed more confidence that it will reach its 2% targetPowell might signal that the slowdown in inflation allows the central bank to focus more on its

The People’s Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead. USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.CNH is the offshore yuan. USD /CNH has no restrictions on its trading range.A significantly stronger or weaker rate than expected

Heads up for European Central Bank Governing Council member Olli Rehn, governor of the Finnish central bank, speaking during the US evening on Monday, August 19, 2024: 2200 GMT / 1800 US Eastern time I haven’t a topic for Rehn’s speech Left to right, Tuomas Välimäki, Member of the BoardGovernor of the Bank of Finland

BNZ – BusinessNZ Performance of Services Index for June 2024, via BusiznessNZ, comes in at 44.6 prior 40.7 (revised a touch higher) The report, in summary: Activity in New Zealand’s services sector for July showed some improvement after a horrendous June result44.6 is the highest result since Mayhas averaged 46.5 so far for 2024, compared

Federal Reserve Bank of San Francisco President Mary Daly says the Federal Open Market Committee (FOMC) needs to take a gradual approach to lowering borrowing costs. Financial Times with the front page piece: The FT is gated, but in (very) brief from the report on the interview: Daly calls for “prudent” approach to lowering ratespushes

We haven’t heard much out of Japan today: Japan Machinery orders for June 2024: 2.1% m/m (expected +1.1%)Japan’s LDP will hold its leadership election on September 27 The USD has weakened across the major FX board, but its against JPY that is most notable. On Friday USD/JPY fell towards 147.50. After trading above 148.00 in

A note from JPM analysts says a shock market meltdown could be a scenario that happens again. “Many market participants are dismissing the recent blowup of various crowded trades as a fluke or flash cash, but we see it as more of a dress rehearsal for what’s to come” JP Morgan are referring to early

Headlines hitting the wires with no further details. For markets the focus is on the impact on oil prices. Oil futures reopen for the week’s trade in a couple of hours (6pm US Eastern time). This article was written by Eamonn Sheridan at www.forexlive.com.

There isn’t much here to move major FX rates upon release. This snapshot from the ForexLive economic data calendar, access it here. The times in the left-most column are GMT. The numbers in the right-most column are the ‘prior’ (previous month/quarter as the case may be) result. The number in the column next to that,

UPCOMING EVENTS: Monday: New Zealand Services PMI, Fed’s Waller, BoC’s Senior Loan Officer Survey.Tuesday: PBoC LPR, RBA Meeting Minutes, Canada CPI, Eurozone Wage Growth.Wednesday: Canada PPI, FOMC Meeting Minutes.Thursday: Australia/Japan/Eurozone/UK/US Flash PMIs, ECB Meeting Minutes, US Jobless Claims, Jackson Hole Symposium.Friday: New Zealand Retail Sales, Japan CPI, Canada Retail Sales, Fed Chair Powell, Jackson Hole

I’m hosting a special free webinar on Monday at 9 am ET (1300 GMT) on ‘7 Common Trading Traps and How to Avoid Them’ It’s an especially notable topic right now given the moves in the yen and equities this month. The best way to make it in markets is to stay in markets. Register

19th-23rd August 2024: Mon: US Democratic National Convention (Aug 19-22), Bank of Indonesia Announcement, New Zealand Trade Balance (Jul)Tue: US Democratic National Convention (Aug 19-22), PBoC LPR, RBA Minutes, Riksbank Announcement, CBRT Announcement, EZ Final CPI (Jul), Canadian CPI (Jul)Wed: US Democratic National Convention (Aug 19-22), FOMC Minutes, Japanese Trade Balance (Jul)Thu: US Democratic National

Solana (SOL) price prediction: Bullish vs. bearish scenarios for the future value of SOL The Solana (SOL) cryptocurrency has been one of the most talked-about assets in the crypto space, known for its high-performance blockchain and a surge in market value in recent years. As someone who has actively traded Solana since its early days,

A note from economists at the investment bank. I haven’t spotted it yet but news wires carrying the highlights. In summary: cuts US recession likelihood to 20% from 25%, and says it may cut further, to 15%, if the nonfarm payroll report for August is ‘reasonably good’GS cite the retail sales data, best since early

We’ve been spared from summer doldrums in financial markets this year but early next week could be something of a dud, particularly until Jackson Hole begins. Monday kicks off with Fed’s Waller speaking at 09:15 am ET but that will be all for the day. Tuesday features speeches from the Fed’s Bostic and Barr but

US stock markets started lower today but found a footing early and slowly climbed the hill. Overall volatility was lower than it’s been and newsflow was light but the bulls should be encouraged by another positive close, led by smaller caps today. On the day: S&P 500 +0.2%Nasdaq Comp +0.2%DJIA +0.2%Russell 2000 +0.35% Toronto TSX

HSBC analyzes the factors behind GBP’s strong performance in 2024 and discusses the potential challenges ahead. While the currency has been resilient due to its high carry, HSBC warns that the outlook may not remain as favorable, especially with expected further rate cuts by the Bank of England (BoE). Key Points: GBP’s Strength in 2024:

US August prelim UMich consumer sentiment 67.8 vs 66.9 expectedUS July housing starts 1.238M vs 1.330M expectedChina issues new gold import quotas after pause — reportFed’s Goolsbee: There are some things that are flashing yellowJuly Canada housing starts 279.5K vs 245.0KCanada June manufacturing sales -2.1% vs -2.6% expectedBaker Hughes US oil rig count -2Israeli intel

The recent rally in the euro hasn’t gotten much attention because there isn’t a great fundamental backing behind it. Europe’s economy continues to struggle and the move is mostly about broader US dollar selling. That said, sometimes the technicals lead the fundamentals and the poor economy in Europe is priced in at this point while

Oil rigs -2 to 483Gas rigs +1 to 98 WTI crude oil was last down $1.60 to $76.49. This article was written by Adam Button at www.forexlive.com.

Prior was 1.353MStarts -6.8% vs +3.0% priorBuilding permits +1.396M vs 1.429M expectedPermits -4.0% vs +3.9% prior This article was written by Adam Button at www.forexlive.com.

The US dollar is under broad pressure as risk trades improve and we tick towards the weekend. Earlier, Treasury yields were low and that that should have weighed on the dollar but didn’t. AUD/USD has rose to the highest since July 21 in the latest leg. This article was written by Adam Button at www.forexlive.com.

I posted earlier on the big change from the PBOC: The People’s Bank of China has switched up its main policy rate to watch — But, back to today … the People’s Bank of China USD/CNY reference rate is due around 0115 GMT. The People’s Bank of China (PBOC), China’s central bank, is responsible for

Small business defaults are up, now it’s getting a little cautionaryUnemployment is up and that’s a caution sign I don’t think it will surprise anyone when Goolsbee is banging the table for a rate cut and dovish statement in September but it’s certainly not clear that others are ready to line up behind him yet.

Daily stock market review: mixed trends and sector performances highlight cautious investor sentiment Today’s U.S. stock market shows a diverse panorama, exhibiting a mixture of trends and sentiment across various sectors. The heatmap provides a clear snapshot of today’s market dynamics, with significant movements in technology, healthcare, and financial sectors catching most of the investor’s

US Secretary of State Anthony Blinken announced a trip to Israel earlier this week, then postponed it, raising some questions about what was happening with ceasefire negotiations. Now an Axios reporter reveals he will visit Israel on Sunday as part of a regional visit that will include Egypt and Qatar. This article was written by

Fundamental Overview Yesterday, we got two strong US data releases as the Jobless Claims and Retail Sales figures came out much better than expected. The initial reaction was US Dollar bullish, but after a while the market started to fade the move. The reason is that the risk-on sentiment is generally negative for the greenback

We started the week at 2.9% and finish at 2.0%. I would be worried about that if we were anywhere close to Q3 GDP numbers but the prelim estimate is still months away and vol early in the cycle is normal. “After this morning’s housing starts report from the US Census Bureau, the nowcast of

Prior was +0.4%Sales at $69.6 billion in June on declines in 17 of 21 subsectorsDeclines led by the transportation equipment (-2.9%), chemical product (-5.8%) and primary metal (-2.7%) subsectorsTotal sales fell 0.3% in the second quarter of 2024 in third consecutive quarterly declineSales down 1.8% y/yTotal inventory levels +0.1%Unfilled orders -0.8% Retooling at auto factories

Israeli intelligence now assesses that Hezbollah and Iran have lowered the level of alertness in their rocket and missile units and that the response will take place at a later date, according to five Israeli officials, cited by the New York Times. “By Friday, Israeli intelligence had assessed that Hezbollah and Iran had lowered the

Mt. Gox fund liquidation weighed heavily on bitcoin yesterday in what was an otherwise-strong environment for risk assets. It’s been a tricky run for bitcoin as it disconnects from the tight correlation to the Nasdaq. I think that connection is ultimately restored and it climbs back into the $64,000 range but I also think the

Vice President Kamala Harris will call for the construction of 3 million new housing units in her first four years in office, as well as a new tax incentive for builders that construct properties for first-time home buyers The Wall Street Journal with the report. The housing plan is part of Harris’ economic plan, which

Rabobank analysts on oil: “The concerns of an escalation in the Middle East between Iran and Israel again remain overblown with regard to elevated crude oil prices” “Only direct action between Saudi Arabia, Iran, and the United States toward some kind of blockade or closure of the Strait of Hormuz will materially affect the global

On the day: Stoxx 600 +0.3%German DAX +0.8%Francis CAC +0.4%UK’s FTSE 100 -0.4%Spain’s Ibex +0.6%Italy’s FTSE MIB +2.0% Italy posted some strong outperformance today while the UK struggled. On the week: Stoxx 600 +2.4%German DAX +3.4%Francis CAC +2.7%UK’s FTSE 100 +5.0%Spain’s Ibex +2.9%Italy’s FTSE MIB +4.0% The STOXX 600 is up 6.4% from the lows

The rally in gold earlier today may have been underpinned by the issue of new gold import quotas to Chinese banks. Reuters is now reporting about the new quotas, citing four sources. “The quotas have been issued but the local premium to offshore is low so there is no guarantee that the quotas will be

Goldman Sachs discusses their outlook for USD/JPY, emphasizing the role of US rates and real rate differentials in determining the pair’s future performance. Key Points: Dominance of US Rates: Return to Fundamentals: Goldman Sachs expects USD/JPY to align more closely with fundamentals, particularly US interest rates, following recent dislocations driven by carry trade unwinds.Constructive US

US President Joe Biden says “we’re not there yet but we’re closer than three days ago”. I don’t think many traders are trying to predict the outcome of this but Iran seems to have backed off in its planned attack. Here is what Israeli geopolitical analyst Michael Horowitz said: US has put forth a bridging

July final was 66.4Current conditions 60.9 vs 62.7 priorExpectations 72.1 vs 68.8 prior1-year inflation 2.9% vs 2.9% prior5-10 year inflation 3.0% vs 3.0% priorOverall, expectations strengthened for both personal finances and the five-year economic outlook (highest reading in four months) Yesterday’s retail sales report was strong and Walmart executives repeatedly described a stable and resilient

Prior was 241.7K (revised to 241.6K)Multi-unit starts +21% vs -12% priorSingle-detached +2% vs -2% prior This is a strong reading as the inventory of pre-sold homes and condos continues to be worked through. The problem is that the front of the pipeline has completely dried up. The CMHC cited strong gains in Calgary and Ottawa

It could be a big day for gold as it nears the July record high of $2483. It just crossed through the July high of $2484 in a strong rebound from yesterday’s decline. The next level to watch is $2500. This article was written by Adam Button at www.forexlive.com.

It’s going to be another empty European session on the data front. We will get two notable releases in the US session though, but they shouldn’t be market moving unless we see big deviations from the expected numbers. The first one will be the US Housing Starts and Building Permits, and then we conclude with

German DAX futures +0.3%UK FTSE futures +0.1% This carries over the positive mood after the US retail sales data yesterday, in which Wall Street also rallied to close near the highs. S&P 500 futures are also up another 0.3% currently, with Nasdaq futures up 0.4% and Dow futures up 0.2%. With yesterday’s rally, the S&P

The live link to proceedings is here. Or, here: Bullock opening statement summary is here: RBA’s Bullock says underlying inflation remains too high AUD/USD is circa 0.6612 and barely moving This article was written by Eamonn Sheridan at www.forexlive.com.

There is a bit of a flag pattern forming in gold as price action continues to sit near fresh record highs this week. There was an attempt to breach the key resistance region around $2,475-80 on Wednesday but buyers cooled off after. And after a slight setback, they are quickly turning things around again as

This is not what an overheating economy looks like to me Given the latest jobs report earlier this month, I don’t think anyone thinks that the economy is overheating. But from the retail sales data yesterday, it’s not that bad either. Anyway, this just reaffirms that the Fed is trying to ease into a pivot

Eurostoxx +0.3%Germany DAX +0.3%France CAC 40 +0.2%UK FTSE -0.1%Spain IBEX +0.3%Italy FTSE MIB +2.0% Italian stocks are leading the way as they have some catching up to do amid a market holiday yesterday. As a whole, European indices were looking quite bad after the drop at the end of July and the start of August.

Prior -1.2%UK retail sales +1.4% vs +1.4% y/y expectedPrior -0.2%; revised to -0.3%UK retail sales (ex autos, fuel) +0.7% vs +0.8% m/m expectedPrior -1.5%; revised to -1.3%UK retail sales (ex autos, fuel) +1.4% vs +1.4% y/y expectedPrior -0.8% It’s one of those few times that UK retail sales does meet estimates, reaffirming a slight bounce

Reuters poll of economists show expectations for further rising inflation in Japan. The next batch of CPI data from Japan is due on August 23 8.30am Tokyo time2330 GMT on August 221930 US Eastern time on August 22 In brief: Expectations from the survey are that core CPI is forecast to rise 2.7% y/y in

There are a couple to take note of on the board, as highlighted in bold. And they are both for EUR/USD at the 1.0960 and 1.1000 levels. The latter is the bigger one and arguably of more interest, given similar expiries in the past few days as well. Following the reaction to the US retail

Fundamental Overview Yesterday, we got two strong US data releases as the Jobless Claims and Retail Sales figures came out much better than expected. The initial reaction was US Dollar bullish, but after a while the market started to fade the move. The reason is that the risk-on sentiment is generally negative for the greenback

RBC continues to see the Bank of Canada lowering rates by 25 basis points on Sept 4 and again on Oct 23. The market sees a very small chance of 50 bps at one of those meetings but this forecast is generally in line with what’s expected. The highlight next week is Canada’s CPI report

The dollar is now ceding quite a bit of ground in trading today, reversing the nudge higher after the US retail sales yesterday. It comes alongside a shove lower in Treasury yields. 10-year yields are now down 5.5 bps to 3.871% and that is weighing on the greenback. At the same time, US futures are

Via EMSC (pic below) on the Taiwan earthquake: Magnitude 6.1Depth 15 km Distance 117 km E of Taichung, Taiwan 27 km SE of Hualien City, Taiwan This article was written by Eamonn Sheridan at www.forexlive.com.

RBNZ Assistant Governor Silk speaking in an interview: Bank is taking a measured approach to rate cutsits uncertain how quickly inflation will fallthe behaviour of price inflation is crucial for the cash rate path ahead NZD/USD little changed around 0.5984 The Reserve Bank of New Zealand cut its cash rate by 25bp on Wednesday This

I’m hosting a special free webinar on Monday at 9 am ET (1300 GMT) on ‘7 Common Trading Traps and How to Avoid Them’ It’s an especially notable topic right now given the moves in the yen and equities this month. The best way to make it in markets is to stay in markets. I’m

The Nikkei is also benefitting from the sharply weaker yen overnight, with USD/JPY leaping to highs circa 149.25. It a little lower today but is still assisting Japanese stocks. Hong Kong’s Hang Seng strong also. Mainland Chinese stocks not so much. This article was written by Eamonn Sheridan at www.forexlive.com.

Fundamental Overview Yesterday, we got two strong US data releases as the Jobless Claims and Retail Sales figures came out much better than expected. The initial reaction was US Dollar bullish, but after a while the market started to fade the move. The reason is that the risk-on sentiment is generally negative for the greenback

Headlines: USD/JPY eases lower alongside bond yields on the dayGold takes aim at key resistance as the weekend approachesWhat are the main events for today?Fed’s Goolsbee: You don’t want to tighten any longer than you have toUK July retail sales +0.5% vs +0.5% m/m expectedEurozone June trade balance €22.3 billion vs €13.9 billion priorNever underestimate

Consumers still have money to fill their tanks or fly away. That’s the message from today’s US retail sales report and commentary from executives at Walmart. Both emphasized a strong US consumer and WMT said the global consumer was also fine. If so, spending at gasoline stations is likely to remain solid, underpinning gasoline demand.

The market flirted with trading a recession at the start of the month but has decided against it. Today’s data underscored why with better retail sales and initial jobless claims leading to the sixth day of gains in the Nasdaq. That 9% rally is the best six-day run since November 2022. The index is now

Will make great efforts to enhance the sustained upward trend of the economyIt is necessary to stick to goals and not to take a relaxed approachNeed to expand domestic demand more vigorously, focus on boosting consumptionWill explore new growth points for foreign tradeTo make differentiated policy support based on the needs of different groups of

Fundamental Overview Yesterday, we got some strong US data as the Jobless Claims and Retail Sales figures came out much better than expected. All the major currencies gained against the Yen for two main reasons. The first is that yields rose across the board as the market continues to price out the aggressive rate cuts

There is no better feeling than standing out from the crowd with an award voted for by industry peers. Winning a UF Award represents one of the crowning achievements of any forex brokerage or fintech provider. As the Nomination Round reaches its final stages, numerous nominees are continuing to pour in. Don’t worry though, there

JPMorgan chair of global research Joyce Chang, spoke on Bloomberg TV Thursdauy. Says despite the strong retail sales report on in the US she still sees the Federal Open Market Committee (FOMC) cutting rates by 100bp over the course of the rest of this year. the path is clearer now for the next 6 monthsdisinflation

Nikkei and Hang Seng the stars in regional equities todayRBA Governor Bullock’s comment that its ‘premature’ to think about rate cuts helping AUDJP Morgan still tipping 100bp of Federal Open Market Committee (FOMC) rate cuts in 2024China to toughen rules monitoring movement of people and goods from regions with monkeypoxReserve Bank New Zealand Governor Orr:

Few assets have had as wild of a journey over the past decade as Bitcoin, with the leading crypto poised to make further waves in 2024. Despite all its ups and downs, Bitcoin still reigns supreme with the largest cap of any crypto and unquestionable dominance amongst retail traders and adoption. With this in mind,

A note from analysts at a European-based bank on Thursday said Powell will signal at his speech at Jackson Hole that the inflow of data supports beginning the Fed’s rate cut cycle at the September 17-18 meeting. Yeah, I think there is no doubt about that. Maybe a super high CPI will halt it but

Prior €13.9 billion Looking at the first half of the year, euro area exports totaled to €1,430.1 billion from January to June this year. That is down by 0.8% compared to the same period last year. Meanwhile, imports during that period totaled to €1,322.6 billion. And that is down 8.4% compared to the same period

It’s pretty much a broad based move with lower yields weighing slightly on the session. USD/JPY is down 0.4% to 148.75 while GBP/USD is up 0.3% to 1.2885 currently. Even with equities holding a little firmer, USD/CHF is also down 0.5% to 0.8688 as it succumbs to a push back against a recent key technical

Venezuelan President Nicolas Maduro on Thursday rejected comments from U.S. and Brazilian leaders about his country’s contested July presidential election. “I reject absolutely that the United States is trying to become Venezuela’s electoral authority,” We keep an eye on Venezuela because it is an oil producer. This article was written by Eamonn Sheridan at www.forexlive.com.

Coming up from 9.30 am Sydney time, which is 2330 GMT and 1930 US Eastern time Appearing in Australia’s parliament, before the the House of Representatives Standing Committee on Economics are a plethora of Reserve Bank of Australia big wigs: Michele Bullock, Governor, Andrew Hauser, Deputy Governor, Sarah Hunter, Assistant Governor (Economic), Christopher Kent, Assistant

Quite the jump for these! The Reserve Bank of New Zealand cut its cash rate on Wednesday. While consumer inflation has been drifting down this data has gone in the opposite direction. Earlier from New Zealand today: New Zealand July Manufacturing PMI 44.0 (prior 41.1) — The Producer Price Index (PPI) is a measure of

Fundamental Overview Yesterday, we got two strong US data releases as the Jobless Claims and Retail Sales figures came out much better than expected. The initial reaction was US Dollar bullish, but after a while the market started to fade the move. The reason is that the risk-on sentiment is generally negative for the greenback

The overblown panic on Monday last week suddenly looks quite silly now, doesn’t it? Yes, the labour market did show further signs of softening in July. Perhaps Hurricane Beryl had something to do with it, even if the BLS said that it had “no discernable effect”. However, the US economy as a whole is not

Crypto markets have often been front-runners of market sentiment but it’s not unfolding that way today. Bitcoin is down 3.6% but stocks are at the highs of the day, with the Nasdaq up 2.5%. The divergence is likely related to worries in the crypto market about Mt. Gox liquidation and distribution. In any case, the

Business NZ Manufacturing PMI for July 2024 records its 17th consecutive month of contraction. some small signs of improvementstill significantly below its long-term average of 52.6 BusinessNZ’s Director, Advocacy Catherine Beard: sector continuing to strugglee BNZ’s Senior Economist Doug Steel: manufacturing activity will turn when the broader economy turnsEasing monetary conditions will help in this

Bullock spoke earlier saying inflation is still high and persistent and its too early to be thinking about rate cuts: RBA’s Bullock says underlying inflation remains too high The RBA left its cash rate unchanged at its meeting on August 5 and 6 and meets again on 23 and 24 September. AUD has rallied …

Yesterday the People’s Bank of China declined to conduct a new Medium-term Lending Facility (MLF): No Medium-term Lending Facility (MLF) operation from the People’s Bank of China today It’ll conduct the MLF on August 26. This is after the setting of Loan Prime Rates (LPRs) due on the 20th. The PBOC did similar last month.

Federal Reserve Chair Powell will speak during his regular time slot on Friday morning at Jackson Hole. The Aug 22-24 Jackson Hole conference ids centred on the effectiveness of policy and its implementation – an especially topical subject at the moment. It has also been a venue that has been used to offer a fuller

The People’s Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead. USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.CNH is the offshore yuan. USD /CNH has no restrictions on its trading range.A significantly stronger or weaker rate than expected

Info incoming from around the place re a Chinese customs announcement: China to intensify monitoring of individuals and goods coming from monkeypox-affected regionsnew measures mandate that travellers from outbreak regions must declare any contact with symptomatic individuals and report any symptoms they have The initiatives aim to curb the spread of monkeypox within China. Extended

China has built the world’s largest offshore oil platform that will be used at the Marjan field in Saudi Arabia. More info here at the link Its an interesting read and also has other information including: Chevron company announced last week it had successfully tested a new high-pressure extraction technology at a deepwater well in

Federal Reserve Chair Powell will speak during his regular time slot at Jackson Hole, Friday morning of the event at 10am: Federal Reserve Chair Powell to speak at 10am US Eastern time on August 23 Bank of America say that Powell’s speech is unlikely to have much impact on the US dollar. Analysts at the

The dollar is slightly lower on the day, giving back some of the gains from yesterday. The more solid US retail sales data helped to give the greenback a lift, alongside risk trades. It’s a repeat lesson to the old saying: Never underestimate the power of US the consumer Looking to the session ahead, we’ll

Reserve Bank of Australia Governor Bullock opening statement: Board is of the view that it currently has the balance right between reducing inflation in a reasonable timeframeOur full employment goal is not served by letting inflation stay above target indefinitely.The board remains focused on the potential upside risks to inflation.Board is trying to bring inflation

Orr is speaking in Wellington, New Zealand. Says the Bank’s Monetary Policy Committee has achieved a very strong level of confidence that low and stable inflation is back within 1 – 3 % rangeI want to see inflation expectations and pricing intentions continue to remain anchored NZD/USD is around 0.5986 This article was written by

Singapore’s non-oil domestic exports (NODX) for July 2024 +12.2% m/m vs. +2.2% expected and -0.4% in June +15.7% y/y expected +1.2%, prior -8.7% Electronics and non-electronics exports growing. Non-oil exports to the United States +28.9% y/y to China +21.1% y/yto the European Union, Japan, Hong Kong and South Korea fell — Singapore Non-oil Domestic Exports

US July retail sales +1.0% versus +0.3% expectedWalmart offered six endorsements on the health of the US and global consumerUS initial jobless claims 227K vs 235K expectedUS July Philly Fed -7.0 vs +6.0 expectedAugust Empire Fed -4.7 vs -6.0 expectedUS July import prices 0.1% vs -0.1% expectedUS August NAHB home builder sentiment survey 39 vs

Good morning, afternoon and evening all. Any charts, technical analysis, trade ideas, thoughts, views, ForexLive traders would like to share and discuss with fellow ForexLive traders, please do so:. And happy Friday to all! This article was written by Eamonn Sheridan at www.forexlive.com.

Volatility in in August markets led to something of a reset in markets, with high-conviction trades being tested by rapid drawdowns. Zooming out though, fund managers have a relatively consistent view of a soft landing scenario. “Core optimism on soft landing (76%) & US large cap growth stocks [is] unbowed,” Bank of America analysts write.

Featuring on the agenda for the session ahead: Michele Bullock, RBA Governor, Andrew Hauser, Deputy Governor, Sarah Hunter, Assistant Governor (Economic), Christopher Kent, Assistant Governor (Financial Markets), and Brad Jones, Assistant Governor (Financial System) are all appearing before Australia’s parliament. The House of Representatives Standing Committee on Economics. Reserve Bank of New Zealand Governor Adrian

Bitcoin has fallen nearly $2000 in the last 30 minutes, dropping to $57,600. The low so far matches the one from earlier in the week and that should provide some support. A break lower could complete the round trip to $55,000 and wouldn’t bode well for the broader risk trade. As for the catalyst, it

Good morning, afternoon and evening all. Any charts, technical analysis, trade ideas, thoughts, views, ForexLive traders would like to share and discuss with fellow ForexLive traders, please do so: This article was written by Eamonn Sheridan at www.forexlive.com.

Barclays has moved up its forecast for the next Bank of Japan rate hike to January 2025, citing anticipated labor cost pass-through to service prices and a clearer outlook on wage hikes for FY25. Key Points: Revised Forecast: Barclays now expects the next BoJ rate hike to occur in January 2025, with a possibility of

The People’s Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead. USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.CNH is the offshore yuan. USD /CNH has no restrictions on its trading range.A significantly stronger or weaker rate than expected

It looked like the pair was on for a break yesterday after the US CPI report but the dollar didn’t end up weakening too significantly. Since then, price action has been a little tight for EUR/USD, with today’s range a measly 12 pips so far between 1.1003 to 1.1015. The reaction to the main event

Will focus on striking a balance between short-term and long-term objectives, between growth stabilization and risk preventionChina will improve the mechanism for forestalling and defusing systemic risksChina will place greater emphasis on the use of price-based tools such as interest ratesWill gradually shift away from a focus on quantitative targetsChina will adhere to supportive monetary

Prior was +0.5%Retail inventories +0.2% vs +0.2% prior No surprises here. This article was written by Adam Button at www.forexlive.com.

Headlines: EUR/USD eyes firmer break above 1.1000 but still anchored for nowGold Technical Analysis – Struggling to break a key resistanceWeekly update on interest rates expectationsFed’s Bostic says open to a rate cut in September as inflation coolsRBNZ expected to cut cash rate by at least another 50 bps before year-end – pollUK Q2 preliminary

Fundamental Overview Gold has been on a steady rise recently due to a geopolitical driver coming from the Middle East and a fall in real yields. Yesterday, we saw a drop after a benign US CPI report which might have been due just to technicals as we were at a key resistance level or a

Stock markets are saying the growth scare of August is over. US retail sales beat estimates today and Walmart executives offered a strong endorsement of the health of the consumer. Shares of WMT are up 8% in the premarket. S&P 500 futures are up 1% and have now cleared the 61.8% retracement of the July-August

Prior month: 0.0% Retail sales came in at $709.7 billion vs $704.3 billion in the month before Details: Retail sales: +1.0 vs 0.0% prior Retail sales YoY: +2.7 vs +2.3% priorEx Autos: +0.4 vs 0.4% prior (estimate was +0.1%)Prior ex autos: 0.4% Control group: +0.3 vs 0.9% prior (estimate was 0.1%)Prior month control group: 0.9%

Prior was 42Current sales 44 vs 47 priorProspective sales 25 vs 27 prior I would expect to see builder sentiment ticking up on lower market rates and expectations for Fed rate cuts. This article was written by Adam Button at www.forexlive.com.

It’s still very early in the quarter to be forecasting GDP. The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the third quarter of 2024 is 2.4 percent on August 15, down from 2.9 percent on August 8. After recent releases from the Treasury’s Bureau of the Fiscal Service, the US

USD/JPY soared after stronger US retail sales but stalled right at a key level. It rose to 149.32, just two pips shy of the 38.2% retracement of the swan dive from 161.80 to 141.67. It’s stalled there and backed off to 148.96. The Fibonnaci level is a classic barrier in a bounce from a quick

Fundamental Overview The S&P 500 has been on a steady rise ever since the last week’s US Jobless Claims as the data quelled the fears around the labour market following the weak NFP report. The “growth scare” triggered by the ugly ISM Manufacturing PMI and the weak NFP report looks to be behind us for

It’s been a bit of a back and forth week for the pair but price action is ultimately looking to settle higher. The pair nudged higher on Tuesday but was dragged back down yesterday despite some dollar softness in play. But after the more solid employment figures earlier here, we are seeing the aussie pull

Monetary policy is moderately restrictiveLabor market is no longer overheatedLabor market no longer clear upside risk to inflationRecent data have bolstered my confidence on inflationRisk to both sides seem more balancedTime may be nearing for a change in policySees GDP growth 1.5% to 2.0% in H2 It doesn’t get any clearer than this, he’s ready

Producer prices were flat on the month while import prices were up marginally by 0.1%. Relative to the same month a year ago, Swiss producer and import prices are seen down 1.7%. This article was written by Justin Low at www.forexlive.com.

After the release of “Ready Player One” in 2018, which illuminated the possibilities of VR, the idea that virtual reality would become a breakthrough in progress soon really caught on. Companies jumped on the bandwagon, investing tons of money in developing this futuristic technology. Unfortunately for their stakeholders, however, not much profit has been seen.

Wholesale sales m/m -0.6% vs -0.6% expected and -0.8% prior.New motor vehicle sales m/m 168.0K vs 184.7K prior. This article was written by Giuseppe Dellamotta at www.forexlive.com.

Yoshitaka Shindo, Japan’s Minister of State for Economic and Fiscal Policy: On GDP data: govt will work closely with BOJ to carry out flexible macroeconomic policy managementGovt will closely monitor, economic, price situations and financial marketsThe economy expected to gradually recover as wages, income improveNeed to be mindful of downside risks in overseas economy, market

The European session is empty today. We will get lots of data in the American session beginning with the US Jobless Claims and Retail Sales and then concluding with the US Industrial Production and the NAHB Housing Market Index a bit later. The focus will likely be on the US Jobless Claims. 12:30 GMT/08:30 ET

Prior +13.9 Details: New orders: 14.6 vs 20.7 priorShipments: 8.5 vs 27.8 priorUnfilled orders: 3.2 vs 9.1 priorDelivery times: 14.1 vs 8.5 priorInventories: -4.8 vs -9.4 priorPrices paid: 24.0 vs 19.8 priorPrices received: 13.7 vs 24.2 priorEmployment: -5.7 vs 15.2 priorAverage workweek: -2.3 vs -1.6 prior Six-month ahead expectations: General business conditions: 15.4 vs 38.7

The early-August rout continues to be erased from every market in Europe with today being the biggest bounce-back day so far: On the day: Stoxx 600 +1.2%German DAX +1.7%Francis CAC +1.2%UK’s FTSE 100 +0.8%Spain’s Ibex +1.2%Italy’s FTSE MIB +1.0 This article was written by Adam Button at www.forexlive.com.

The currency market is in a tug-of-war today. The US dollar is getting help from rising Treasury yields but is under pressure from improving risk appetite. That’s created a bifurcation trade as USD/JPY holds onto its gains while the US dollar gives back post-data gains against the pound and commodity currencies. GBP/USD dropped on better

Empire Fed -4.7 vs -6.0 prior Details New orders: -7.9 vs -0.6 priorShipments: 0.3 vs 3.9 priorUnfilled orders: -7.4 vs -11.2 priorDelivery times: -3.2 vs -9.2 priorInventories: -10.6 vs -6.1 priorPrices paid: 23.4 vs 26.5 priorPrices received: 8.5 vs 6.1 priorEmployment: -6.7 vs -7.9 priorAverage employee workweek: -17.8 vs -0.1 priorSupply availability: -2.1 vs 0.0

Introduction Today’s trading session showcased a notable shift towards the tech sector, with substantial gains marking the progress of major players like Apple and Amazon. A closer look at today’s stock market heatmap reveals intricate patterns of performance across various sectors, providing valuable insights for investors keen on refining their strategies. Dynamic Growth in Tech

The combination of the US retail sales report for July and comments from Walmart executives are a strong endorsement on the health of the US and global consumer. It’s a company with better data than any US statistics agency and is often candid on what it’s seeing. Here are some quotes from the now-completed conference

Import prices m/m 0.1% vs -0.1% expected and 0.0% prior.Import prices y/y xx% vs 1.6% prior.Export prices m/m 0.7% vs 0.0% expected and -0.5% prior. This article was written by Giuseppe Dellamotta at www.forexlive.com.

The Australian labour market report is due at 11.30 am Sydney time 0130 GMT2130 US Eastern time (on Wednesday) The unemployment rate is expected to remain steady at 4.1%. Yesterday a private survey from, Roy Morgan, published their July unemployment report: ‘Real’ unemployment rate surges to 10.1% (up 1.8 percentage points)Total unemployed reaches 1,597,000 (highest

Five economic data reports were released at the same time on Thursday and the picture convincingly showed a healthy consumer and jobs market, with only modest weakening in manufacturing. The main release was the July US retail sales report and it was up 1.0% compared to +0.3% expected. There was a modest 0.2 pp revision

US July CPI +2.9% vs +3.0% y/y expectedEIA weekly crude oil inventories +1357K vs -2200K expectedUS MBA mortgage applications w.e. 9 August +16.8% vs +6.9% priorEyes on the whales with 13F filings due Markets: S&P 500 up 0.4%WTI crude oil down $1.19 to $77.16US 10-year yields down 2.1 bps to 3.83% Gold down $18 to

Reserve Bank of New Zealand Governor Orr spoke in a TV interview, basically repeating what he has been saying since the meeting yesterday. In a nutshell: to proceed with caution in adjusting interest ratesprice behaviour is in line with low inflationremoving monetary policy restraint is appropriate for the time being Earlier today: Reserve Bank New

Prior was +0.6% (revised to +0.3%)Manufacturing output -0.3% vs -0.2% expectedPrior manufacturing output +0.4% (revised to 0.0%)Capacity utilization 77.8% vs 78.5% expected (78.8% prior) This is on the cool side and combined with the Philly Fed today raises some questions about the industrial side of the economy, though I’m reminded that hurricane effects could be

Fundamental Overview The Nasdaq has been on a steady rise ever since the last week’s US Jobless Claims as the data quelled the fears around the labour market following the weak NFP report. The “growth scare” triggered by the ugly ISM Manufacturing PMI and the weak NFP report looks to be behind us for now.

23 of 25 economists forecast a 25 bps rate cut in October nextOf the remaining two, one anticipates a 50 bps rate cut and the other no change23 of 25 economists forecast the RBNZ to cut by at least 50 bps to 4.75% by year-endThe remaining two expect the cash rate to be cut to

Downside risk for US employment, magnitude of September Fed interest rate cut in questionChina’s National Bureau of Statistics (NBS) says PPI deflation will narrow in months aheadUBS says doesn’t see reason for 50bp Federal Open Market Committee (FOMC) rate cut in SeptChina July data: Retail sales +2.7% y/y (expected +2.6). Industrial production +5.1% y/yJapan’s Economy

Fundamental Overview The price action in the Russell 2000 has been mostly rangebound in the past couple of weeks although the sentiment continues to favour more upside. The “growth scare” after the ISM Manufacturing PMI and the NFP report looks to be behind us thanks to the US Jobless Claims last week. This week we

Initial jobless claims 227K vs 235K expected and 233K prior.Continuing jobless claims 1864K vs 1875K expected and 1875K prior. This should reinforce further the views that the July NFP report might have been indeed skewed negatively by Hurricane Beryl and that the labour market continues to be resilient. This article was written by Giuseppe Dellamotta

The bank injected 577 bn yuan in 7 day reverse repos instead today. The Bank says this is meant to counteract the maturing MLF loans, tax payments, and government bond issuance. 401bn yuan of MLF come due This article was written by Eamonn Sheridan at www.forexlive.com.

Another strong employment report from Australia. Employment +58.2k expected +20.0k, prior +50.2k Unemployment Rate 4.2% expected 4.1%, prior 4.1% Participation Rate 67.1% expected 66.9%, prior 66.9% Full Time Employment +60.5k prior + 43.3k While the unemployment rate rose, so did jobs added – the higher participation rate will be pointed at for the jobless jump.

Nomura on the Bank of Japan: see the December monetary policy meeting as the most likely date for the next interest rate increaseBOJ will hike then even if inflation “trends sideways without rising”, Nomura cite the Bank’s July “Summary of opinions”, saying it signalled a shift among policymakers; that the Board still view monetary conditions

Federal Reserve Bank of Chicago President Austan Goolsbee spoke with Bloomberg: says he is growing more concerned about employment — His comments are crossing various news wires, but we had the story earlier: Fed’s Goolsbee: Rising unemployment may indicate worsening job market This article was written by Eamonn Sheridan at www.forexlive.com.

We heard from Goolsbee last week and there isn’t much new here: Would focus much more on employment if job market weakensPolicy is ‘very restrictive’ economy not overheatingEconomic conditions will warrant size of rate cuts This article was written by Adam Button at www.forexlive.com.

There are a couple to take note of on the day, as highlighted in bold. The first being for EUR/USD at the 1.1000 mark. That continues from yesterday and there will be large expiries at the figure level in play again tomorrow. As such, the expiries could offer a bit of a pull factor in

I posted earlier on the view from Nomura, looking for a December 2024 rate hike from the Bank of Japan, even if inflation doesn;t rise! Nomura say around 150 is now the ceiling for USD/JPY. Forecast a BOJ rate hike in December Snippet from Barclays, a contrasting view, saying the Bank needs to see higher

Oil was impressive on Monday but it was driven by a few factors: Data showing net positioning extremely bearishMiddle Eastern war worriesOPEC demand data stronger than feared That led to a jump higher in crude to the best levels since July 22 but since then, global growth worries have crept back into crude, sapping it

The employment market in Australia continues its strong trend, with 58K jobs added in July. The jobless rate rose a tick to 4.2%the participation rate hit a new high at 67.2%Underemployment rate 6.3% (prior was 6.4%) Underutilisation rate 10.6% (prior was 10.5%) AUD/USD update: Earlier: HSBC favors long AUD/NZD following RBNZ rate cut This article

There was a bit of a push and pull after the US CPI report yesterday but Wall Street ended up with a positive close. The Nasdaq was flat though and we’re seeing some light struggles in tech now again. On the other hand, Walmart just reported its Q2 earnings and that was a beat on

Berkshire Hathaway’s Q2 2024 13F filing reveals some shifts in the Oracle’s portfolio. Here’s what changed in that data, which reflects June 30 holdings: New Positions: Buffett initiated stakes in HEIA (1.04 million shares) and ULTA (0.69 million shares), signaling interest in new sectors. Buying Spree: Significantly boosted SIRI holdings to 132.88 million shares from

Chelsea Football Club and TMGM are excited to announce a multi-year extension of their partnership. Having worked together since 2023, TMGM continues its position as the club’s Official Regional Online Forex and Trading Partner in the Asia-Pacific region. As an industry leader with offices on three continents, TMGM is renowned for its reliability in CFD

Card spending data covers around 68% of core retail sales in NZ. You’ll note in the screen shot the Food Price Index data also. Earlier we had further comments from RBNZ Governor Orr Reserve Bank New Zealand Governor Orr: Definitely moving the right direction on inflation Now this data and the kiwi $ remains basically

The People’s Bank of China set its Medium-term Lending Facility (MLF) rate on the 15th of each month. The rate is currently 2.3%, after the PBoC lobbed in a surprise cut on the 25th of last month! People’s Bank of China reduces 1 year Medium-term Lending Facility (MLF) rate to 2.3%“PBOC surprises markets with an

The latest US CPI report was published on Wednesday: Forexlive Americas FX news wrap: CPI continues to cool JP Morgan in response: the CPI is a ‘green light’ for the Federal Open Market Committee (FOMC) to cut in September (the meeting is on Sep 18 and 19)the Fed may cut 50bp, or 25bp JPM on

Reuters survey of Japanese firms, their Japan Corporate Survey. Headlines via Reuters:… China and US politics outranking JPY intervention. Sheesh: 13% of firms considering scaling back China operation vs 3% thinking about expansionJapanese firms believe Kamala Harris better for business as us president43% of firms see Harris as better for business vs 8% favouring Trump24%

The US CPI report was a decent one: Forexlive Americas FX news wrap: CPI continues to cool Snippet from MS: CPI data was not ‘as cool as yesterday’s PPI”but the as-expected CPI likely will not rock the boatthe primary question is whether the Fed will cut rates by 25 or 50 basis points in Septemberif

Eurostoxx +0.4%Germany DAX +0.5%France CAC 40 +0.2%UK FTSE +0.1%Spain IBEX +0.2% After a poor start to August trading, European indices are still on the recovery path. And the recent steadiness in the market mood is definitely helping. US futures are also seen a touch higher, with S&P 500 futures up 0.2% currently. It will be

Prior +0.4%Services -0.1% vs +0.1% m/m expectedPrior +0.3%Industrial output +0.8% vs +0.1% m/m expectedPrior +0.2%; revised to +0.3%Manufacturing output +1.1% vs +0.1% m/m expectedPrior +0.4%; revised to +0.3%Construction output +0.5% vs -0.1% m/m expectedPrior +1.9%; revised to +1.7% The monthly reading doesn’t mean much on a day like this, when the focus is more on

Rate cuts by year-end Fed: 103 bps (62% probability of 25 bps rate cut at the upcoming meeting) ECB: 71 bps (96% probability of rate cut at the upcoming meeting) BoE: 48 bps (61% probability of no change at the upcoming meeting) BoC: 72 bps (98% probability of rate cut at the upcoming meeting) RBA:

German DAX futures +0.3%French CAC 40 futures +0.2%UK FTSE futures +0.4% This comes with US futures also holding a touch higher on the day. S&P 500 futures are up 0.2%, Nasdaq futures up 0.3%, and Dow futures up 0.2% currently. The reaction to the US CPI report yesterday was a little more subdued given the

RBNZ Governor Orr Current economic environment is weakEconomy weaker than anticipated six months ago We have strong control over the inflation storyNo talk on committee of raising rates againWe are not done yet on inflation but definitely moving in right directionIf inflation expectations well anchored we can look through some noise Kiwi $ is barely

The labour market is weakening “but not weak”As price pressures ease, officials need to be conscious of their mandate of maintaining full employment The narrative now is that the Fed is slowly conforming to market expectations for a rate cut next month. I reckon Powell should reaffirm that at Jackson Hole next week. However, they’re

Prior +0.7%GDP +0.9% vs +0.9% y/y expectedPrior +0.3% Looking at the breakdown, household consumption contributed +0.12%, government consumption +0.30%, and gross capital formation +2.38% on the quarter. That is partially offset by a fall in net trade (-2.20%). Overall, it still points to a solid showing in Q2 for the UK economy. And that has

For once, USD/JPY is settling within a 50 pips range so far on the day. Overall, the reaction to the US CPI report yesterday has been rather underwhelming. The dollar did nudge a little lower while stocks climbed but not by a whole lot. Then again, traders are pricing between a 25 bps and 50

The beat for retail sales is going to be read as slightly better news on household consumption/demand. The other two headline data points are both misses though. Industrial output has dribbled lower compared to the previous month for the third consecutive month. A spokesperson for China’s National Bureau of Statistics (NBS) says China’s economy was

The US CPI report from Wednesday, ICYMI: Forexlive Americas FX news wrap: CPI continues to cool Earlier: JP Morgan says the Fed has a green light for a 50bp rate cut in Sep. Here’s the trigger.Morgan Stanley flag potential 50bp Federal Open Market Committee (FOMC) Septembr rate cut UBS weigh in: The inflation data has

Hopes are up, again, for stimulus from China after the most recent data, which continues the theme of e=unevenn recovery: China July data: Retail sales +2.7% y/y (expected +2.6). Industrial production +5.1% y/y National Bureau of Statistics (NBS) with remarks: Economic recovery trend needs to be consolidatedExpects recovery in consumption to consolidate as policies gain

The US CPI data is here ICYMI: Forexlive Americas FX news wrap: CPI continues to cool And thoughts of a 50bp interest rate cut are gathering pace (we are a fickle lot aren’t we?): JP Morgan says the Fed has a green light for a 50bp rate cut in Sep. Here’s the trigger.Morgan Stanley flag

People’s Bank of China USD/CNY reference rate is due around 0115 GMT. The People’s Bank of China (PBOC), China’s central bank, is responsible for setting the daily midpoint of the yuan (also known as renminbi or RMB). The PBOC follows a managed floating exchange rate system that allows the value of the yuan to fluctuate

Australia MI Inflation Expectations for August 2024 come in at 4.5% Previous was 4.3% The focus is on the jpobs data due real soon: Australian jobs report due 15 August 2024, the unemployment rate will not be 10.1% This article was written by Eamonn Sheridan at www.forexlive.com.

Japanese GDP for the April to June quarter of 2024 is better than the contraction in Q1. +0.8% q/q expected 0.5%, prior -0.6% QQ Annualised is +3.1% expected +2.1%, prior -2.3% Private consumption q/q +1.0% … up for the first time in 5 quarters expected +0.5%, prior -0.6% External demand q/q -0.1% expected -0.1%, prior

No end in sight for the woes besetting China’s property market. July house prices -0.7% m/m and -4.9% y/y priors -0.6% and -4.5% respectively Why buy now when they’ll be cheaper later is the vicious circle This article was written by Eamonn Sheridan at www.forexlive.com.

HSBC recommends going long on AUD/NZD after the Reserve Bank of New Zealand (RBNZ) delivered a 25 basis point rate cut to 5.25%, citing the central bank’s dovish stance as a key factor. Key Points: RBNZ Rate Cut: The RBNZ cut its rate by 25bps to 5.25%, which was not entirely unexpected given the market

TS on the US dollar, this in summary recent Fed pivot has caused the dollar to depreciate since the start of Julymuch of this has been against the Japanese Yen, which has climbed approximately 10% over the past month, as the BOJ takes a different path of finally raising interest rates We think the greenback

It’s a busy one on the economic calendar. China’s economy is sputtering: the epic property crunch is now in its third year,burned by the property meltdown and lingering trauma of the pandemic, Chinese consumers are keeping a tight grip on their wallets local government finances are under severe strain private-sector confidence is in the doldrums

I very much doubt the speech will move the financial market needle much at all. In summary of the info received so far on what’s to be said: focusing her economic agenda on reducing the cost of groceries, housing, and healthcare, expanding the child tax credit, and differentiating herself from Republican Donald Trump on tariffs

What’s Warren Buffett holding? We will get a much better idea of what the Berkshire Hathaway CEO and other whales are holding as the 13F filing deadline hits. Tomorrow is 45 days following the end of the quarter, which means the forms that show holdings as of June 30 are due today. Expect a wave

On Thursday, the focus of US markets will shift from inflation to the health of the consumer. Interest rates are biting with a smattering of large companies reporting softening spending, including Home Depot and McDonald’s. Spending so far appears to be hurting most in rate-sensitive spaces but could quickly spread if consumers retrench. So far

The yen is liking the news: Japanese PM Kishida will not run for reelection in LDP race in September Kishida is said to be stepping down in response to funding scandals he is taking responsibility for. I’m not totally across Japanese election funding scandals (apart from knowing rule 1 of funding scandals anywhere is “don’t

Earlier: Reserve Bank of New Zealand announce cash rate cut to 5.25%NZD/USD marked lower after the Reserve Bank of New Zealand cut its cash rate I’m glad I got my forecast the right way! RBNZ Governor Orr doesn’t wait around for a bazillion confirmations, he just goes and gets it done. A bit like Wheeler

It’s been an uneventful pre-market and relatively steady since the close yesterday. There was a slight ‘sell the fact’ trade after CPI that was met with dip buyers. Futures are now 7 point higher, or 0.1%. One stock in focus is Alphabet after Bloomberg reported that US regulators are considering breaking it up. This article

Gold is down 1% today after a third failure near $2475. It’s still higher on the week after it shot up on Monday but it couldn’t get through the July highs and has since retreated. A big part of that is the market walking back its Fed rate cut expectations. What’s hard to square is

Fundamental Overview Yesterday, the US PPI report missed expectations by a big margin triggering a selloff in the US Dollar as the market started to position into a potentially soft US CPI release today. For the Fed, the market is split between a 25 and 50 bps cut in September and a total of 107

The market is feeling better and better about a recovery from the August rout. AI stocks are rebounding and the market is confident that the economy isn’t so bad and that if it is, the Fed will be there. I worry that the bond market is sending a different signal but the message could simple

The market continues to ratchet down bets on the Federal Reserve rapidly easing interest rates. September Fed fund futures are now priced for a 56% chance of a 25 basis point cut and a 43% chance of a 50 bps cut. That’s a far cry from just last week when market watchers were talking about

This piece is from analyst Michael Pascoe here is Australia, arguing that a Reserve Bank of Australia interest rate cut is likely on the horizon despite all the tough tough from Governor Bullock last week. Check it out here: The Reserve Bank fibs and has no idea about wages causing inflation The key points: RBA

The euro is now back to flat on the year. It opened at 1.1036, fell as low as 1.0601 on April 15 and has now climbed all the way back. There is some resistance at the December high of 1.1139 followed by last year’s high at 1.1276. The latest leg of EUR/USD is more about

Major currencies are lightly changed for the most part, with only the New Zealand dollar on the move so far today. That owes to a more dovish RBNZ as they become the sixth central bank among the G10 to cut interest rates in the latest cycle. The Fed looks primed to be the seventh of

Fundamental Overview Yesterday, the US PPI report missed expectations by a big margin triggering a selloff in the US Dollar as the market started to position into a potentially soft US CPI release today. The UK CPI this morning missed estimates across the board as well and raised the probabilities of a back-to-back cut in

It was around ~36% before that so it is a notable step up in terms of market pricing. And it sounds just about right to be honest. The overall report was a soft one by all means. Core annual inflation eased further, although is still above the 3% mark. But services inflation, one of the

What’s the bond market saying here? The July-August plunge in Treasury yields was understandable enough as the carry trade unwound, AI worries hit and shorts were squeezed. That’s all faded away in other markets this week and yet yields are still falling. Yes, some of that is falling inflation as illustrated by today’s CPI report

German DAX futures +0.2%UK FTSE futures +0.5% This follows the more solid showing by US indices yesterday, ending roughly at the highs for the day. So, European equities look buoyed as well coming into today and UK stocks will be happy with the latest inflation numbers here. US futures are more muted though, keeping flattish

The Reserve Bank of New Zealand is at 0200 GMT Wednesday, which is 2200 US Eastern time on Tuesday evening. Earlier previews: RBNZ monetary policy meeting – Reuters poll is not clear cut, 19 say hold, 12 say 25bp cutANZ forecast the RBNZ to remain on hold next week, signal a rate cut later in

Prior -0.6%; revised to -0.9% That’s a miss alongside a negative revision to boot. But at least it doesn’t take away from the Q2 GDP number released at the same time. Here is the breakdown for those interested: This article was written by Justin Low at www.forexlive.com.

Headlines: UK July CPI +2.2% vs +2.3% y/y expectedTraders now see BOE decision in September to be a coin flipThe kiwi is the main mover today amid dovish RBNZWhat are the distribution of forecasts for the US CPI?US CPI data due Wednesday, the ranges of estimates (& why they’re crucial to know)What is the market

Final numbers for today: German DAX, +0.4%France CAC +0.6%UK FTSE 100 +0.7%Spain’s Ibex +0.2%Italy’s FTSE MIB +0.9% The recovery from the early-August rout continues. This article was written by Adam Button at www.forexlive.com.

The WSJ Fedwatcher Nick Timiraos is out with his take on today’s CPI and he says: September rate cut from the Fed as close to a lock as these things getThis report makes it easier at the margin to avoid dissents on the first cutTo get 50 bps, you’d probably need to see something bad

Prior was -3728KGasoline -2894K vs -1434K expectedDistillates -1673K vs -636K expectedRefinery utilization +1.0% vs +0.1% expectedProduction mbpd 13.3mbpd vs 13.4mbpd prior API data late yesterday showed: Crude -5205KGasoline -3689KDistillates +612K Oil ticked lower on the EIA headlines, which are certainly a twist after the bullish private numbers yesterday. WTI was flat at $78.17 just before

Announcement is here: Reserve Bank of New Zealand announce cash rate cut to 5.25% NZD/USD lower: This article was written by Eamonn Sheridan at www.forexlive.com.

Prior +6.9%Market index 251.3 vs 215.1 priorPurchase index 137.7 vs 133.9 priorRefinance index 889.3 vs 661.4 prior30-year mortgage rate 6.54% vs 6.55% prior The big jump in the past week comes as we see a spike in refinancing activity in particular. That comes as the average rate of the most popular US home loan came

Prior was +3.0% y/ym/m reading at +0.2% vs +0.2% expectedMonth-over-month unrounded +0.1549% Core measures: Core CPI +3.2 vs +3.2% expectedCore CPI m/m +0.2% vs +0.2% expectedCore unrounded +0.166%Real weekly earnings -0.2% vs +0.3% prior Supercore m/m +0.205% vs +0.054% priorSupercore y/y +4.468% vs +4.651% prior Key Details: Shelter index rose 0.4%, accounting for nearly 90%

Today’s stock market offers a vibrant tapestry of performances, with notable advancements in technology stocks counterbalanced by slight retreats in various other sectors. This heatmap snapshot provides actionable insights into the nuanced dynamics dominating today’s trading landscape. This article was written by Itai Levitan at www.forexlive.com.

Bitcoin continues to be a solid pre-cursor to the broader risk trade. And if you’re long stocks, that’s not a good thing at the moment. BTC has turned lower after an initial pop following CPI and is now just above $60,000. US equities are flat after giving up some modest early gains. This article was

The numbers via oilprice.com on Twitter: — Expectations I had seen centred on: Headline crude -2.2 mn barrelsDistillates -0.6 mn bblsGasoline -1.4 mn — This data point is from a privately-conducted survey by the American Petroleum Institute (API). It’s a survey of oil storage facilities and companiesThe official report is due Wednesday morning US time.

The days of CPI as a major market mover are over. As I suspected, there was something of a ‘sell the fact’ trade on the numbers. The headlines were lower than the consensus but the dollar didn’t fall, nor did Treasury yields. Instead, they both rose, though modestly. The move in bonds has stuck but

No changes to the initial estimate as the euro area economy is seen expanding slightly in Q2. The economic challenge has become tougher in Q3 though, with fears surrounding a contraction or at least stagnation continuing to build. This article was written by Justin Low at www.forexlive.com.

Fed’s Bostic is speaking and says: Balance of risks in economy is getting back to levelOur rate posture is restrictiveThat’s not where we want it to be foreverRecent inflation data give me more confidence we can get back to 2%. We need to see a little more data We need to make sure inflation trend

Oil – private survey of inventory shows a larger headline crude oil draw than was expectedIt is a solid day for US indices. Indices close the day near highs with PPI the catalyst.Rick Reider: Market cleaned out a lot of leveraged positionsCrude oil futures settled at $78.35Atlanta Fed Pres. Bostic: Balance of risks and economy

The consensus on today’s CPI is 3.0% y/y with core at 3.2% but I suspect it’s going to have to be well-below that to keep yields falling and stocks going up. The market front-run a soft (or at least in-line) CPI when yesterday’s PPI was released and has continued to pile in after UK CPI.

Whether just starting a trading journey or being a veteran of twenty years, everybody has something to learn as an investor. Knowledge is always at a premium, and this is why its developed into such a strong area of focus at the upcoming Finance Magnates Pacific Summit (FMPS), coming this August 27-29 in Sydney, Australia.

Prior +2.0%Core CPI +3.3% vs +3.4% y/y expectedPrior +3.5% The standout detail here is a further drop in core annual inflation in July. The headline reading is also lower than estimated but is a slight increase to June. But as core prices are seen easing further, that’s a vote of confidence for the BOE to

We went from pricing a soft landing to a crash landing and then back to something in between that now. Traders were pretty sure the Fed needed to cut by 50 bps and perhaps even via an emergency meeting on Monday last week. Yes, that was just a little over a week ago. Talk about

Prime Minister Kishida press conference. He is announcing he won’t be running to stay on as PM. To make full exit from deflation-prone economy, we must promote wage, investment growth and achieve target to expand size of Japan’s GDP to 600 trln yenImportant to show new face of LDP in leadership raceFirst step to do

Fundamental Overview Yesterday, the US PPI report missed expectations by a big margin triggering a selloff in the US Dollar as the market started to position into a potentially soft US CPI release today. That led to a key breakout in the NZDUSD pair which didn’t last as the RBNZ tonight cut rates by 25

Prior +2.2%HICP +2.7% vs +2.6% y/y prelimPrior +2.5% The good news is that core annual inflation is seen slowing further to 1.5%, down from 1.8% in June. That will give the ECB more confidence at least in chasing the next rate cut. This article was written by Justin Low at www.forexlive.com.

Why it’s important? In the Asian session, Eamonn published the range of estimates for today’s US CPI report. These ranges are important in terms of market reaction because when the actual data deviates from the expectations, it creates a surprise effect. Another important input in market’s reaction is the distribution of forecasts. In fact, although

Later today, Wednesday, 14 August, we get the US consumer inflation data. for July 2024due at 1230 GMT, which is 0830 US Eastern time Here’s what investment banks expect. This via the Wall Street Journal, posted here earlier. — Taking a look at the range of expectations compared to the median consensus (the ‘expected’ in

There are a couple of expiries to take note of, as highlighted in bold. They are for EUR/USD at the 1.0925 and 1.1035 levels. They former lies near the 200-hour moving average, so there is some technical significance there. However, price action today is largely going to be dictated by the reaction to the US

Reserve Bank of New Zealand Governor Adrian Orr is scheduled to speak at 0000 GMT (this is 1900 US Eastern time on Thursday) at the Wellington Chamber of Commerce in New Zealand The RBNZ decision is due at the top of the hour. Earlier previews: Reserve Bank of New Zealand decision due soon. Which will

Eurostoxx +0.5%Germany DAX +0.4%France CAC 40 +0.7%UK FTSE +0.6%Spain IBEX +0.4%Italy FTSE MIB +0.6% For UK stocks, investors are also cheering on the softer inflation numbers earlier here. Despite the more optimistic picture above, US futures are more muted on the day thus far. S&P 500 futures are flat as there is a more tentative

Fundamental Overview The Yen continues to struggle despite the dovish expectations around the Fed’s interest rates path. Yesterday, we got a big downside surprise in the US PPI report and although the USD weakened heavily against the other major currencies, the JPY failed to sustain the gains. One of the main reasons is that the

Nomura with remarks on the US equity markets and the Federal Reserve. On equities: downside risk has dropped, says Nomura cite macro hedge funds buying into the pullback … if not for these the softness would have been prolongedAlso, “We think the downside risk posed to U.S. equities by systematic investors is much less serious

Chief operating officer of Balckstone spoke on CNBC on TRuesday: US economy has been resilient but now there are signs of a slow downpointed specifically to weaker consumer sectorsays with inflation coming down, including in rental housing, the Federal Reserve could help the economy with rate cuts”… as this slowdown continues it gives the Fed

Market pricing is for a 29bp cut at the next RBNZ meeting, on October 9 and 67bp of cuts by November (meeting is Nov. 6) That is, a 25 bp rate cut is priced for the each of the next two meetings. NZD/USD update: Earlier: ICYMI – RBNZ cut its cash rate by 25bp, market

The main event in the European session was the UK CPI report which missed expectations across the board and incresed the probability of a back-to-back cut in September. There’s not much else for the rest of the session as we will just get the Eurozone industrial production and the second estimate of the Q2 GDP.

Reserve Bank of New Zealand Orr: confident inflation back in its target band can commence re-normalising rateswe considered a range of moves and consensus was for 25bpsprojections are NZ is headed towards a period of low and stable inflationbroad range of indicators are consistently soft Reasonable first step for monetary easing, in strong position to

Here is what the investment bank economists and analysts are expecting for the July inflation, CPI, data from the US due on Wednesday, August 14, 2024 at 8.30 am US Eastern time (1230 GMT) Info via a tweet from Nick Timiraoos at the Wall Street Journal: The Federal Open Market Committee (FOMC) seem on a

Reserve Bank of New Zealand has cut its Offical Cash Rate by 25 bps. Market pricing had tipped this, while most analyst did not. Added – a few tech gremlins have beset me … I’ve posted all the statement and minutes main points separately, here: ICYMI – RBNZ cut its cash rate by 25bp, market

The monthly Reuters Tankan survey, a guide to the Bank of Japan’s quarterly tankan survey: August manufacturers sentiment +10, July was +11May non-manufacturers sentiment +24 vs +26 in JulyNovember manufacturers index seen at +5, non-manufacturers at +26 Japanese manufacturers’ confidence slightly dipped in August. Its expected to dip further in the months ahead. This sentiment

US CPI data due Wednesday, the ranges of estimates (& why they’re crucial to know)RBNZ Governor Orr: Confident inflation back in its target bandJapan Kishida: Must promote wage, investment growth for full exit deflation-prone economyMarket pricing is for an Reserve Bank of New Zealand rate cut at its next meeting tooICYMI – RBNZ cut its

That is putting a major drag on NZD/USD, which is down over 1% to near 0.6000 currently. Given the more dovish signals, traders are now pricing in ~107 bps of rate cuts by year-end. There’s still just three meetings to go, in September, November, and December. While the “expectation” is for the RBNZ to stay

People’s Bank of China USD/CNY reference rate is due around 0115 GMT. The People’s Bank of China (PBOC), China’s central bank, is responsible for setting the daily midpoint of the yuan (also known as renminbi or RMB). The PBOC follows a managed floating exchange rate system that allows the value of the yuan to fluctuate

Media in Japan with the political bombshell news that Japanese PM Kishida will not run for re-election in the ruling party leadership race in September. By dropping out of the race to remain leader of his party he will step down as premier, local media reported. The JPY is strengthening a little on the news.

The Reserve Bank of New Zealand is at 0200 GMT Wednesday, which is 2200 US Eastern time on Tuesday evening. Earlier previews: Reserve Bank of New Zealand meet today – BNZ calls for an immediate rate cutRBNZ monetary policy meeting – Reuters poll is not clear cut, 19 say hold, 12 say 25bp cutANZ forecast

Good morning, afternoon and evening all. Any charts, technical analysis, trade ideas, thoughts, views, ForexLive traders would like to share and discuss with fellow ForexLive traders, please do so: This article was written by Eamonn Sheridan at www.forexlive.com.

The major US indices got a boost from lower-than-expected PPI data. Tomorrow the CPI will be released. The PPI data does not necessarily translate into the CPI, but there is some crossover to the PCE data that will be released later this month. Tomorrow, CPI is expected to show a 0.2% gain after a -0.1%

Still like equities , but we have come a long way pretty quicklyCan evolve the portfolio and have a bit less equities at these multiplesYou can get a lot of yield without going out on the yield curveThinks the Fed cuts rates at September meetingPersonally I think the fed funds rate is priced wrongI would

1310 GMT, which is 0910 US Eastern time: Federal Reserve Bank of St. Louis President Alberto Musalem speaks on the U.S. economy and monetary policy 1710 GMT, which is 1310 US Eastern time: Federal Reserve Bank of Philadelphia President Patrick Harker The docket of Fed speakers has been light, and it’ll continue to be light

The People’s Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead. USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.CNH is the offshore yuan. USD /CNH has no restrictions on its trading range.A significantly stronger or weaker rate than expected

Goldman Sachs just a little wary over some of the weaker economic data. Says a US recession is not priced in and there are signs of a slowdown in Europe and Chinaadd the recent softening in the US labor market But, says GS, equity markets are still positioned optimistically: cyclical stocks have underperformed during the

The Reserve Bank of New Zealand is at 0200 GMT Wednesday, which is 2200 US Eastern time on Tuesday evening. Earlier previews: RBNZ monetary policy meeting – Reuters poll is not clear cut, 19 say hold, 12 say 25bp cutANZ forecast the RBNZ to remain on hold next week, signal a rate cut later in

Sec. of State Blinkin has postponed his trip he Middle East. He was expected to leave for the region tonight, but postponed due to the uncertainty about the situation. This news is according to Axios citing sources. There is also increased tensions between Ukraine and Russia. This article was written by Greg Michalowski at www.forexlive.com.

Crude oil futures are settling at $78.35, which is down -$1.71 or -2.14%. The high price today reached $80.11 which was just short of the 100-day MA (blue line on the chart below). Yesterday, the price approached that MA and found willing sellers as well. On the downside, the 200-day MA (green line) looms at

The NZDUSD is on a run. Today, the price moved above and away from the 200 bar MA on the 4-hour chart at 0.6020. It moved above the 100 day MA and the 61.8% retracement at 0.6036 area, and more recently, a swing level going back to early July at 0.60627. The next key target

German DAX futures +0.2%UK FTSE futures flat This comes with US futures also a touch higher on the day. S&P 500 futures are up 0.2% with Nasdaq futures up 0.3% and Dow futures up 0.2%. The litmus test for broader market sentiment will come later today in the form of the US PPI data. So,

The European indices are dragged higher by the US stocks, but gains are more subdued. While the S&P index is up 1.33% and the NASDAQ is now up 2.0%, the biggest gain in Europe was Spain’s Ibex which increased by 0.73%. The other indices were more subdued. The final numbers are showing: German DAX, +0.48%

Overview of Today’s Stock Market Today’s trading session showcased a dynamic performance across various sectors, with a notable surge in technology stocks leading the way. The market heatmap reveals a robust advancement in semiconductor and key tech players, fostering a buoyant sentiment among investors. As sectors vary in performance, understanding these dynamics can provide key

The AUDUSD has stretched higher today on the USD selling and risk on flows, and in the price is moving away from the 100 and 200 day MAs. Over the last 3-days, the price has been briefly moving above those MAs and backing off. The market has not been ready. Finally, the price has been

The sabers are rattling… Iran is said to be holding military drills in the northern part of the country, and on the sea holding Navy drills in the Caspian Sea near Azerbaijan. Earlier today, Hezbollah lobbed some bombs from Gaza that were ineffective. This article was written by Greg Michalowski at www.forexlive.com.

Fundamental Overview Gold has been on a steady rise since the latter part of last week alongside crude oil which suggests that the price action might have been driven more by the tensions in the Middle East. That became even more evident yesterday as we got a Fox report saying that Iran could have attacked

The USDCAD has found support buyers near 1.3717 and resistance sellers near the 50% of the move up from the July low to the August high. That level comes in at 1.3766. The price has been between those extremes since middday on August 7th (4 trading days). The range is only around 50 pips. At

The USDJPY stalled the rally near a swing area earlier today near 147.886. The subsequent fall helped by the tamer US PPI data took the price toward the rising 100 hour MA (blue line at 147.037). The move below that level, opened the door for the lower 200 hour MA at 146.67. The low just

Fundamental Overview The S&P 500 bounced strongly from the lows last week following the good US Jobless Claims figures as the data quelled some of the fears around the labour market after the weak US NFP report. That’s been also evident from the market pricing for rate cuts as expectations for a 50 bps cut

From major financial institutions to individual investors, participants in the $7.5 trillion per day forex market rely on dedicated intermediaries to access this vast and complex ecosystem. Operating behind the scenes but fulfilling a vital role, forex brokers have become the crucial conduit between regular traders across the world and the fluid currency markets they

The NZD is the strongest and the CHF is the weakest as the NA session begins. The USD is mixed with gains vs the CHF and JPY balanced by declines vs the GBP, AUD and NZD. The EURUSD and USDCAD are little changed. The US PPI data will be reported today at 8:30 AM ET

Torsten Slok, chief economist at Apollo pushed back against the narrative that the US economy is slowing. “.. there are still no signs of a US recession, and the US economy is doing just fine with steady growth in .. restaurant bookings, air travel, hotel bookings, credit card data,” he wrote. “In short, Fed pricing

Besides the classic “as expected,” one of the analysts’ favorite phrases is “markets are talking.” This means that significant price changes could indicate that something major is coming. For example, if investors anticipate an increase in geopolitical tensions that could disrupt supply chains or oil or gas production, the dollar index, gold, and even Treasury

In the kickstart video earlier today, the 38.2% and the falling 100 bar MA on the 4-hour chart was holding resistance at 1.2810. Getting above that level and the 200 bar MA at 1.2819 would open the door, and that is what happened. The move has taken the price to 1.2829. The 50% of the

A market leader in providing liquidity solutions, X Open Hub, has confirmed its involvement in one of the largest online trading, fintech and crypto events in Asia-Pacific (APAC), announcing its role as an official exhibitor at the inaugural FMPS:24. The company will have a strong presence at the expo, shining a spotlight on its innovative

Prior was 1410 (revised to 3430)Overseas visitors change y/y +3.8% vs +12.1% prior NZD was trading at 0.6587 ahead of the data. This article was written by Adam Button at www.forexlive.com.

The EURUSD broke above targeted swing area between 10949 and 1.09477, and extended to the next target near 1.0963. Sellers leaned on the first look of that level. The short term support is now between 1.0942 and 1.09477. I would expect buyers to lean against that level. This article was written by Greg Michalowski at

I’m cautious on risk assets at the moment but I can see the case for optimism: 1) The Fed put is there. It worked last week. 2) The recessionary winds are blowing but you can’t underestimate the US consumer 3) Certainly a better entry point than it’s been 4) AI has run a long way

This will go down as one of the all-time crazy headlines. This article was written by Adam Button at www.forexlive.com.

Prior month 2.6% YoY revised to 2.7%Ex Food and energy MoM 0.0% vs 0.2% estimateEx Food and energy YoY 2.4% vs 2.7% estimate. Prior month 3.0%Ex Food and Energy/Trade 3.3% vs 3.2% (revised from 3.1%Ex Food and Energy/Trade MoM 0.3% vs 0.1% last month (revised from 0.0%) This article was written by Greg Michalowski at

The USDCHF moved above the 38.2% retracement of the move down from the July high to the August low both yesterday and again today. The US PPI data came in weaker pushing the price back to the downside, but support nearly 100 hour moving average at 0.8646 currently did attract some buying. In the short-term,

The broader S&P and NASDAQ indices are trading sharply higher and in the process making technical brakes to the upside. What are the next key targets? What are the close risks for each. I will go through each in this short video. This article was written by Greg Michalowski at www.forexlive.com.

That’s the highest reading since February 2022 but it still sits below the 50-year average of 98. That’s the 31st straight month that it holds below said threshold now. Looking at the details, much of the improvement owes to a jump in the Expected Business Conditions component (+1.8) though while most other components were relatively

There are a couple to take note of on the day, as highlighted in bold. The first being for EUR/USD at the 1.0900 mark again. So, that will help to keep a floor on price action at least until we get to the US PPI data later in the day. Similarly, the ones for AUD/USD

Prior was +0.8%Wage price index y/y +4.1% vs +4.0% expectedPrior was +4.1% y/y The numbers are a tad cooler than expected, which should continue to tilt the market towards a rate cut. The first one is nearly fully priced now for December. This article was written by Adam Button at www.forexlive.com.

2024 world oil demand growth forecast unchanged at 970k bpd2025 world oil demand growth forecast seen at 950k bpd (previously 980k bpd)Chinese oil demand has contracted for third consecutive monthWeak growth in China now significantly dragging on global gainsOPEC+ cuts are tightening physical marketsCould see a supply deficit as US summer driving season is set

In the kickstart video for August 13, I take a look at through the major currency pairs – the EURUSD , USDJPY and GBPUSD – from a technical perspective. The US PPI data came in tamer than expectations thanks to a fall in service prices. That helped to send the USD lower. What did it

In a Reuters poll: The US 10-year yield to rise to 4.03% in three months. At the last poll the expectation was 4.25% (rates were higher at the time). The current 10 year yield is at 3.861%US 2-year yield to rise to 4.20% in 3 months. Last month, the expectation was for the yield to

US stocks close mixed. Dow down. S&P unchanged. Nasdaq higher.Crude oil futures settle at $80.06, up $3.22 or 4.19%US federal budget deficit for July -$244.00 billion versus -$242.00 billion estimateUS yields are trading lower (at new lows for the day)Crude trade above $79. Highest level since July 19Latest election poll: Harris 47.6% vs Trump 47.1%Geopolitics:

The major US stock indices are opening higher led by the NASDAQ index. A snapshot of the market 4 minutes into the open is currently shows: Dow Industrial Average 195.31 points or 0.50% at 39552.33S&P index is trading up 43.85 points or 0.82% at 5388.23. NASDAQ index of 205.59 points or 1.23% at 16986.20 The

US July NFIB small business optimism index 93.7 vs 91.5 priorThe risk mood continues to hold up, eyes on US PPI data laterGermany August ZEW survey current conditions -77.3 vs -75.0 expectedIEA makes no change to 2024 world oil demand growth forecast in latest reportEuropean equities open on a more positive note as risk mood

Israel media is reporting of explosions heard in Tel Aviv. Hamas armed wing is also saying that it has targeted Tel Aviv with two rockets.A Gaza rocket landed off Tel Aviv coast. There are no casualties reported Crude oil is trading at $79.60 which is down $0.46 on the day. The high price today reached

Prior +3.4%HICP +2.9% vs +2.9% y/y prelimPrior +3.6% The good news is that core annual inflation is seen easing further to 2.8%, down from 3.0% in June. But it is still taking a while to recede towards the 2% mark, so there’s that. This article was written by Justin Low at www.forexlive.com.

August 5 was the worst day in the history of the Nikkei 225 index as it cratered 12%. Just over one week later, that decline is now fully erased. The index is up 2.5% today as Japan returns from a long weekend. That puts it back at the closing level on August 4. The bad

Fundamental Overview The Nasdaq bounced strongly from the lows last week following the good US Jobless Claims figures as the data quelled some of the fears around the labour market after the weak US NFP report. That’s been also evident from the market pricing for rate cuts as expectations for a 50 bps cut in

Prior was -1.1%Index rises to 85 “Consumers breathed a small sign of relief in August as the RBA Board left interest rates unchanged and the support coming from tax cuts and otehr fiscal measures became more apparent,” said Westpac senior economist Matthew Hassan. Particular strength came in the ‘family finances’ section, which jumped 11.7%. This

Eurostoxx +0.4%Germany DAX +0.4%France CAC 40 +0.3%UK FTSE +0.3%Italy FTSE MIB +0.2%Spain IBEX +0.2% It’s a positive start to proceedings, with USD/JPY also trading up to fresh highs for the day at around 147.90 currently. It’s more of the same flows that we saw from yesterday, with markets continuing to breathe easier for now. The