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Thursday, 31 August 2023
Wait-and-See Ahead of US PCE Data, China’s PMI Mixed: SPDR Semiconductor ETF, China A50, Brent Crude
Japan Data On Tap For Thursday
Japan is scheduled to release a batch of data on Thursday, highlighting a busy day for Asia-Pacific economic activity. On tap are July figures for industrial production, retail sales, construction orders and housing starts.
Production is expected to slip 1.4 percent on month after rising 2.4 percent in June. Sales are called higher by an annual 5.4 percent, easing from 5.9 percent in the previous month. Construction orders are tipped to add 2.1 percent on year, down from 8.6 percent a month earlier. Housing starts are expected to fall 0.8 percent on year after sinking 4.8 percent in June.
Australia will provide Q2 data for capital spending and July figures for private sector credit. Capex is expected to rise 1.1 percent on quarter, down from 2.4 percent in the previous three months. Credit is tipped to add 0.3 percent on month, up from 0.2 percent in June.
South Korea will release July numbers for industrial production and retail sales. Production is expected to sink 0.4 percent on month and 5.2 percent on year after falling 1.0 percent on month and 5.6 percent on year in June. Sales are called flat on month after rising 1.0 percent in June.
China will see August results for its manufacturing, non-manufacturing and composite indexes; in July, their scores were 49.3, 51.5 and 51.1, respectively.
Hong Kong will release July numbers for retail sales; in June, sales were up 19.6 percent on year.
Thailand will provide July data for industrial production, current account, imports, exports and trade balance. Production is expected to fall 4.00 percent on year after dropping 5.24 percent in June. The current account surplus in June was $1.40 billion. Imports were down 9.3 percent on year in the previous month and exports fell 5.9 percent for trae surplus of $2.0 billion.
Finally, the markets in Malaysia are closed on Thursday for National Day and will re-open on Friday.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2217362/
Australian Dollar Spikes After China PMI Beat; Can AUD/USD Rise Toward 0.66?
Dollar Extends Losses Against Major Counterparts
The U.S. dollar lost ground against its major rivals on Wednesday, after data showing a slowdown in private sector job growth and a less than expected growth of the U.S. GDP in the second quarter raised expectations of a pause in interest rate hike by the Federal Reserve.
A report from payroll processor ADP showed private sector employment in the U.S. climbed by 177,000 jobs in August after surging by an upwardly revised 371,000 jobs in July.
Economists had expected private sector employment to advance by 195,000 jobs compared to the jump of 324,000 jobs originally reported for the previous month.
The slightly smaller than expected increase in private sector employment added to recent optimism about the outlook for interest rates.
Separately, revised data released by the Commerce Department showed the U.S. economy grew by less than previously estimated in the second quarter.
The report said the increase in gross domestic product in the second quarter was downwardly revised to 2.1% from the previously reported 2.4%. Economists had expected the pace of GDP growth to be unrevised.
The dollar index dropped to 102.94 after the release of the GDP and ADP data, and despite recovering to 103.17, remains in negative territory with a loss of about 0.35%.
Against the Euro, the dollar has weakened to 1.0924 from 1.0882. The dollar is trading at 1.2720 against Pound Sterling, easing from 1.2643.
Against the Japanese currency, the dollar is up, fetching 146.22 yen a unit, after closing at 145.87 yen on Tuesday.
The dollar is little changed against the Aussie at 0.6476. The dollar had dropped to 0.6523 a unit of Aussie earlier in the day.
The dollar is little changed against Swiss franc at CHF 0.8784. Against the Loonie, the dollar is down at C$1.3534.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2217361/
Euro Jumps as US Dollar Pauses and Japanese Yen Sinks. Higher EUR/USD and EUR/JPY?
Gold Futures Settle Higher For 3rd Straight Session, As Dollar Extends Decline
Gold futures settled higher on Wednesday, gaining for a third straight session, as the dollar drifted lower after data showing a drop in U.S. private sector employment growth and a decrease in second-quarter GDP added to optimism about the outlook for interest rates.
The dollar index dropped to 102.94 this morning, and despite recovering to 103.19, remains weak, losing about 0.33%.
Gold futures for December settled higher by $7.90 or about 0.4% at $1,973.00 an ounce.
Silver futures for December ended down $0.035 at $25.104 an ounce, while Copper futures for December settled at $3.8440 per pound, gaining $0.0050.
A report from payroll processor ADP showed private sector employment in the U.S. climbed by 177,000 jobs in August after surging by an upwardly revised 371,000 jobs in July.
Economists had expected private sector employment to advance by 195,000 jobs compared to the jump of 324,000 jobs originally reported for the previous month.
The slightly smaller than expected increase in private sector employment has added to recent optimism about the outlook for interest rates.
Separately, revised data released by the Commerce Department showed the U.S. economy grew by less than previously estimated in the second quarter.
The report said the increase in gross domestic product in the second quarter was downwardly revised to 2.1% from the previously reported 2.4%. Economists had expected the pace of GDP growth to be unrevised.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2217358/
Wednesday, 30 August 2023
Asia Day Ahead: Weak US Data Cooled Rate Bets; Australia inflation Below Expected
Australia Building Permit Data Due On Wednesday
Australia will on Wednesday release July figures for building consents, highlighting a light day for Asia-Pacific economic activity. Permits are expected to sink 0.8 percent on month after falling 7.7 percent in June.
Australia also will see Q2 data for construction work done, with forecasts suggesting an increase of 1.0 percent on quarter following the 1.8 percent gain in the three months prior.
New Zealand will provide July figures for building permits, with expectations for a gain of 0.2 percent on month following the 3.5 percent jump in June.
Japan will see August results for its household confidence index, with forecasts suggesting an index score of 37.5 - up from 37.1 in July.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2217277/
Australian Dollar Falls After CPI Miss; Which Way for AUD/USD, AUD/JPY?
Dollar Loses Ground As Weak Economic Data Weigh
The U.S. dollar lost ground against its major counterparts on Tuesday, weighed down by data showing a drop in U.S. job openings in the month of July, and a decline in consumer confidence.
The latest batch of data has helped ease concerns about the outlook for interest rates.
According to a report released by the Conference Board, consumer confidence in the U.S. deteriorated by much more than anticipated in the month of August. The report said the consumer confidence index tumbled to 106.1 in August from a downwardly revised 114.0 in July.
Economists had expected the consumer confidence index to edge down to 116.5 from the 117.0 originally reported for the previous month.
A separate report released by the Labor Department showed job openings in the U.S. decreased to 8.8 million on the last business day of July.
"From the Fed's perspective, the week is off to a promising start with the JOLTS job opening report much softer than expected, alongside downward revisions to the previous month," said Craig Erlam, senior market analyst at OANDA.
"The Fed needs to see a softer labor market to be confident that price pressures aren't just abating but substantially and sustainably and this report is a move in the right direction," Erlam added.
The dollar index dropped to 103.37, losing nearly 0.7%.
Against the Euro, the dollar is trading at 1.0885, easing from 1.0822. Against Pound Sterling, the dollar is at 1.2647, down from 1.2602.
The Japanese currency is trading at 145.78 yen a dollar, firming from Monday's close of 146.54 yen, after having weakened to 147.36 earlier in the day.
The dollar is down at 0.6482 against the Aussie. Against Swiss franc, the dollar has weakened, fetching CHF 0.8780 a unit, down from CHF 0.8837 a unit.
The dollar is down against the Loonie at C$1.3557, dropping from C$1.3602.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2217276/
Treasuries Move Sharply Higher As Data Eases Interest Rate Concerns
Treasuries showed a significant move to the upside on Tuesday, adding to the gains posted during Monday's session.
Bond prices moved sharply higher in morning trading and remained firmly positive throughout the afternoon. As a result, the yield on the benchmark ten-year note, which moves opposite of its price is tumbled 9.0 basis points to 4.122 percent.
The rally by treasuries came as the latest batch of U.S. economic data helped ease recent concerns about the outlook for interest rates.
Consumer confidence in the U.S. deteriorated by much more than anticipated in the month of August, according to a report released by the Conference Board.
The Conference Board said its consumer confidence index tumbled to 106.1 in August from a downwardly revised 114.0 in July.
Economists had expected the consumer confidence index to edge down to 116.5 from the 117.0 originally reported for the previous month.
A separate report released by the Labor Department showed job openings in the U.S. decreased to 8.8 million on the last business day of July.
"From the Fed's perspective, the week is off to a promising start with the JOLTS job opening report much softer than expected, alongside downward revisions to the previous month," said Craig Erlam, senior market analyst at OANDA.
He added, "The Fed needs to see a softer labor market to be confident that price pressures aren't just abating but substantially and sustainably and this report is a move in the right direction."
A report on private sector employment is likely to attract attention on Wednesday ahead of the release of the Labor Department's more closely watched monthly jobs report on Friday.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2217274/
Gold Futures Settle Notably Higher As Dollar, Bond Yields Drop
Gold futures settled higher on Tuesday as the dollar eased and Treasury yields dropped after data showed a drop in job openings in the U.S., and a drop in consumer confidence.
The dollar index is down nearly 0.5% at 103.55 after having dropped to 104.36 earlier this afternoon.
Gold futures for December ended higher by $18.30 or about 0.9% at $1,965.10 an ounce, the highest settlement since August 7.
Silver futures for September ended up $0.536 at $24.788 an ounce, while Copper futures for December settled at $3.8390 per pound, gaining $0.0470.
According to a report from the Conference Board, consumer confidence in the U.S. deteriorated by much more than anticipated in the month of August.
The report said the consumer confidence index tumbled to 106.1 in August from a downwardly revised 114.0 in July. Economists had expected the consumer confidence index to edge down to 116.5 from the 117.0 originally reported for the previous month.
Data from the Labor Department showed job openings in the U.S. decreased to 8.8 million on the last business day of July.
Inflation data due later in the week may offer further clues on the Federal Reserve's rate trajectory.
Focus is also on purchasing managers' index (PMI) data from China, due on Thursday and Friday.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2217273/
Tuesday, 29 August 2023
Australian Dollar Looks to Recoup Losses Ahead of CPI; AUD/USD, AUD/NZD, AUD/JPY
Japan Unemployment Data Due On Tuesday
Japan will on Tuesday release unemployment data for July, headlining a very light day for Asia-Pacific economic activity.
In June, the jobless rate was 2.5 percent, while the job-to-applicant ratio was 1.30.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2217210/
Risk Mood Improves as US Bond Yields, US Dollar Take a Breather: Russell 2000, USD/JPY, GBP/USD
Dollar Subdued Against Major Rivals
The U.S. dollar retreated from 12-week highs, and stayed largely weak against its major counterparts on Monday with investors assessing the prospects for interest rate after Fed Chair Jerome Powell's speech at Jackson Hole last week, and the most recent economic data.
Investors also await a slew of crucial economic data, including the non-farm payrolls report, PCE price Index, and manufacturing activity data, due later in the week.
The CME Group's FedWatch Tool shows that markets are pricing in an 80.5% chance that the Federal Reserve will keep interest rates unchanged at its meeting in September. This is the lowest number in weeks as markets start to consider the possibility of another rate hike.
The dollar index, which dropped to 103.98 in the Asian session, recovered to 104.17 during the European session, but eased to 104.00 later on in the day, posting a marginal loss.
Against the Euro, the dollar weakened to 1.0818 from 1.0796. Against Pound Sterling, the dollar is down at 1.2601, easing from 1.2579.
The dollar is up marginally against the Japanese currency, fetching 146.53 yen a unit. Against the Aussie, the dollar is weak at 0.6426, and against Swiss franc, the dollar is down slightly at CHF 0.8839.
The dollar is roughly flat against the Loonie at C$1.3601 after having firmed to 1.3571 a dollar earlier in the day.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2217209/
Oil Futures Settle Higher
Crude oil prices edged higher on Monday, amid optimism about outlook for energy demand as China announced a slew of measures to boost the sagging economy.
Reports about Tropical Storm Idalia becoming a hurricane later today, and its likely impact on energy operations in the Gulf Coast of Florida this week also contributed to the uptick in oil prices.
However, lingering concerns about the pace of global economic growth and uncertainty about the outlook for U.S. interest rates limited oil's upside.
West Texas Intermediate Crude oil futures for October ended higher by $0.27 or about 0.3% at $80.10 a barrel.
Oil prices received some support after China announced new steps to bolster its flagging economy and struggling stock market, helping to alleviate fuel demand concerns.
China approved the launch of 37 retail funds over the weekend and also halved the stamp duty on stock trading in the latest attempt to boost struggling markets.
Speculation that the U.S. could ease sanctions on Venezuela in a bid to boost supply limited oil's upside.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2217208/
Gold Futures Settle Modestly Higher
Gold futures settled higher on Monday, recovering after posting losses in the previous two sessions, as the dollar stayed somewhat subdued.
The dollar eased from a 12-week high as investors weighed U.S. Federal Reserve's hawkish stance on interest rates against the darkening economic outlook.
The dollar index dropped to 103.98 in the Asian session, and despite recovering to 104.21 subsequently, retreated again and was last seen at 104.04, down marginally from the previous close.
Gold futures for December ended higher by $6.90 or about 0.4% at $1,946.80 an ounce.
Silver futures for September ended up $0.018 at $24.252 an ounce, while Copper futures for December ended higher by $0.0080 at $2.3920 per pound.
Investors also noted the comments from two Fed officials last week that the central bank is nearing the end of its rate-hiking cycle.
Incremental rate hikes may be required but we may be very near a place where we can hold for a substantial amount of time, Boston Fed president Susan Collins said on Thursday.
Separately, Philadelphia Fed president Patrick Harker indicated that the Fed should keep interest rates at the current level while it assesses the impact on the economy.
Elsewhere in Europe, ECB President Christine Lagarde on Friday emphasized that policy needed to be restrictive.
U.K. interest rates are expected to peak at 5.5% next month as Bank of England policymakers try to minimize the impact of higher borrowing costs on the housing market.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2217207/
Monday, 28 August 2023
XAU/USD Price Forecast: Gold Retains Gains Post-Powell
Australian Dollar Boosted by Hang Seng Uplift on China’s Tweaks. Will AUD/USD Recover?
US Dollar Flirts with Resistance After Powell; EUR/USD, GBP/USD, AUD/USD Price Action
Asia Day Ahead: Relief Rally to Start the Week Ahead of Key Macro Data
Japanese Yen Slides on BoJ and Fed Commentary from Jackson Hole. Higher USD/JPY?
Sunday, 27 August 2023
Markets Week Ahead: US Dollar, Gold, Euro, NFPs, Key Fed Inflation Gauge, China PMI
Saturday, 26 August 2023
Dollar Rises Against Major Rivals After Powell's Jackson Hole Speech
The U.S. dollar climbed in the New York session on Friday, erasing early losses, as Federal Reserve Chairman Jerome Powell signaled willingness to raise rates further to bring down inflation.
In his speech at the Jackson Hole symposium, Powell signaled the possibility of another rate hike as inflation remains too high.
"We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective."
Powell promised to proceed carefully with future monetary policy decisions, calling restoring price stability essential to achieving the Fed's dual mandates of 2 percent inflation over time and maximum employment.
The Fed's monetary policy committee is next scheduled to meet September 19-20, with the central bank widely expected to leave interest rates unchanged.
The dollar index, which dropped to 103.74 around mid morning, climbed to 104.45 after Powell's speech, but pared some gains subsequently. It was last seen at 104.21, up 0.22 percent from the previous close.
Against the Euro, the dollar firmed to 1.0795 from 1.0843. The dollar strengthened to 1.2576 against Pound Sterling. Against the Japanese currency, the dollar is up, fetching 146.46 yen a unit. The dollar rose to a nine-month high of 146.64 before paring some gains.
The dollar is trading at 0.6403 against the Aussie after having strengthened to 0.6380 earlier in the session. The dollar is flat at CHF 0.8847 against Swiss franc. Against the Loonie, the dollar up, fetching C$1.3604 a unit.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2217173/
Oil Futures Settle Notably Higher
Despite some disappointing economic data from Germany and a fairly strong U.S. dollar, oil prices climbed higher on Friday amid tightening supply due to production cuts from OPEC and its major allies.
Higher diesel prices in the U.S., and reports about a fire at a refinery in Louisiana contributed as well to the uptick in oil prices.
A stronger dollar limited oil's upside.
West Texas Intermediate Crude oil futures for October ended higher by $0.78 or about 1% at $79.83 a barrel.
Brent crude futures settled at $84.48 a barrel today, gaining $1.12 or about 1.3%.
Russia and Saudi Arabia announced earlier this month that they would extend their additional cuts into September.
It is widely expected that Saudi Arabia will likely continue with its production cut through October.
According to a report from Baker Hughes, the number of active oil rigs in the U.S. fell again. The oil and gas rig count fell by 10 to 632 this week, the lowest since February 2022.
U.S. oil rigs fell eight to 512 this week, their lowest since February 2022, while gas rigs slipped by two to 115, their lowest since January 2022.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2217172/
U.S. Dollar Higher After Powell's Hawkish Comments
The U.S. dollar climbed in the New York session on Friday, erasing early losses, as Federal Reserve Chairman Jerome Powell signaled willingness to raise rates further to bring down inflation.
In his speech at the Jackson Hole symposium, Powell signaled the possibility of another rate hike as inflation remains too high.
"We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective."
Powell promised to proceed carefully with future monetary policy decisions, calling restoring price stability essential to achieving the Fed's dual mandates of 2 percent inflation over time and maximum employment.
The Fed's monetary policy committee is next scheduled to meet September 19-20, with the central bank widely expected to leave interest rates unchanged.
The greenback climbed to 9-1/2-month highs of 146.63 against the yen and 0.5886 against the kiwi, from Thursday's close of 145.82 and 0.5922, respectively. The greenback is seen facing resistance around 147.5 against the yen and 0.56 against the kiwi.
The greenback advanced to a 1-1/2-month high of 0.8875 against the franc and more than a 2-month high of 1.2547 against the pound, from yesterday's closing values of 0.8843 and 1.2598, respectively. The greenback may challenge resistance around 0.90 against the franc and 1.23 against the pound.
The greenback appreciated to a 1-week high of 0.6379 against the aussie and near a 3-month high of 1.3640 against the loonie, from yesterday's closing quotes of 0.6417 and 1.3581, respectively. Next key resistance for the greenback may be located around 0.62 against the aussie and 1.38 against the loonie.
The greenback hovered at 1.0765 against the euro, its highest level since June 13. The pair was worth 1.0810 at yesterday's close. If the currency rises further, 1.06 is likely seen as its next resistance level.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2217170/
Friday, 25 August 2023
Tokyo Inflation Climbs 2.9% On Year In August
Overall consumer prices in the Tokyo region of Japan were up 2.9 percent on year in August, the Ministry of Internal Affairs and Communications said on Friday.
That was below expectations for an increase of 3.0 percent and was down from 3.2 percent in July.
Core CPI, which excludes the volatile costs of food, was up 2.8 percent on year. The was shy of forecasts for an increase of 2.9 percent and was down from 3.0 percent in the previous month.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2217144/
*Overall Tokyo Inflation +2.9% On Year In August; Core CPI +2.8%
Overall Tokyo Inflation +2.9% On Year In August; Core CPI +2.8%
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2217143/
Gold Futures Settle Slightly Down As Dollar Moves Higher
Gold futures settled lower on Thursday as the dollar climbed up ahead of the Jackson Hole Symposium, recovering well from recent losses.
The symposium will feature meetings by global central bank leaders as well as a speech by Federal Reserve Chair Jerome Powell on Friday that could impact the outlook for interest rates.
The dollar index climbed to 103.94, gaining about 0.5%.
Gold futures for December settled with a small gain of $1.00 at $1,947.10 an ounce.
Silver futures for September ended lower by $0.162 at $24.230 an ounce, while Copper futures for September ended down $0.0375 at $3.7710 per pound.
On the U.S. economic front, data from the Commerce Department showed durable goods orders plunged by 5.2% in July after surging by a revised 4.4% in June. Economists had expected durable goods orders to slump by 4% compared to the 4.6% jump that had been reported for the previous month.
Excluding a pullback in orders for transportation equipment, durable goods orders rose by 0.5% in July after inching up by 0.2% in June. Ex-transportation orders were expected to edge up by 0.2%.
Meanwhile, data from the Labor Department said initial jobless claims slipped to 230,000 in the week ended August 19th, a decrease of 10,000 from the previous week's revised level of 240,000.
Economists had expected jobless claims to inch up to 240,000 from the 239,000 originally reported for the previous week.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2217138/
U.S. Dollar Advances As Initial Jobless Claims Fall; Powell's Speech In Focus
The U.S. dollar climbed against its major counterparts in the European session on Thursday, amid positive jobless claims data and hawkish comments from former St Louis Fed President James Bullard.
Data from the Labor Department showed that U.S. weekly jobless claims fell unexpectedly in the week ended August 19.
Initial jobless claims slipped to 230,000, a decrease of 10,000 from the previous week's revised level of 240,000.
Economists had expected jobless claims to inch up to 240,000 from the 239,000 originally reported for the previous week.
In an interview on Bloomberg television, Bullard said that the re-acceleration in the economy is likely to put upward pressure on inflation and postpone plans for rate cuts from the Fed.
Investors focus on Fed Chair Jerome Powell's speech at the Jackson Hole Symposium on Friday for more clues about the interest rate outlook.
The greenback climbed to 145.95 against the yen and 0.5920 against the kiwi, setting 2-day highs. The currency is seen facing resistance around 147.00 against the yen and 0.57 against the kiwi.
The greenback rose to 1.2626 against the pound and 1.0814 against the euro, from an early low of 1.2728 and a 2-day low of 1.0876, respectively. The currency may challenge resistance around 1.23 against the pound and 1.06 against the euro.
The greenback advanced to 0.6421 against the aussie and 1.3587 against the loonie, off an early 9-day low of 0.6488 and a 3-day low of 1.3509, respectively. Next key resistance for the greenback may be located around 0.62 against the aussie and 1.37 against the loonie.
The greenback touched a 1-1/2-month high of 0.8838 against the franc, reversing from an early 1-week low of 0.8759. If the currency rises further, 0.90 is likely seen as its next upside target level.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2217137/
Thursday, 24 August 2023
US Dollar Toppish Ahead of Powell; EUR/USD, AUD/USD, GBP/USD Price Setups
Retreat in US yields and Nvidia’s Earnings Provide Come Calm: SPDR S&P Semiconductor, Nikkei 225, Silver
Dollar Eases Against Major Counterparts
The U.S. dollar lost ground against its major counterparts on Wednesday, weighed down by data showing sharp drop in U.S. business activity in the month of August.
S&P Global released data showing a slowdown in the pace of growth in service sector activity in the month of August as well as a contraction in manufacturing activity during the month.
Meanwhile, the Commerce Department released a separate report showing new home sales rebounded by much more than expected in the month of July.
The Commerce Department said new home sales spiked by 4.4% to an annual rate of 714,000 in July after tumbling by 2.8% to a revised rate of 684,000 in June.
Economists had expected new home sales to jump by 1.2% to a rate of 705,000 from the 697,000 originally reported for the previous month.
With the much bigger than expected increase, new home sales reached their highest annual rate since hitting 773,000 in February 2022.
The focus is now on the Jackson Hole Symposium, where global central bankers are scheduled to speak. Federal Reserve Chair Jerome Powell will speak on Friday.
The dollar index, which rose to 103.98 in early New York session, fell to 103.30 around early afternoon before recovering to 103.40.
Against the Euro, the dollar weakened to 1.0864, easing from 1.0803. The Pound Sterling regained some lost ground against the dollar, but still remains weak at $1.2719, down from Tuesday's close of $1.2732.
Against the Japanese currency, the dollar weakened to 144.88 yen, down by about 0.7%. Against the Aussie, the dollar is down at 0.6480, easing from 0.6422.
The Swiss franc is up against the dollar at CHF 0.8782, while the Loonie has firmed to 1.3528 against the dollar.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2217084/
*South Korea Producer Prices +0.3% On Month, -0.2% On Year In July
South Korea Producer Prices +0.3% On Month, -0.2% On Year In July
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2217083/
Crude Oil Price Loses Grip as Despite Optimism Taking Hold. Where to for WTI?
Treasuries Move Sharply Higher Following Sluggish Economic Data
Treasuries moved sharply higher over the course of the trading day on Wednesday, adding to the modest gains posted in the previous session.
Bond prices climbed firmly into positive territory in early trading and saw further upside as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, tumbled by 13.0 basis points to 4.198 percent.
The ten-year yield added to the 1.4 basis point dip seen on Tuesday, pulling back further off its highest levels in fifteen years.
The rally by treasuries came following the release of some disappointing U.S. economic data, which helped ease recent concerns about the outlook for interest rates.
S&P Global released data showing a slowdown in the pace of growth in service sector activity in the month of August as well as a contraction in manufacturing activity during the month.
Meanwhile, traders shrugged off a Commerce Department report showing new home sales rebounded by much more than expected in the month of July.
Traders also continued to look ahead to the highly anticipated economic symposium in Jackson Hole, Wyoming, which kicks off on Thursday.
The symposium will feature meetings by global central bank leaders as well as a speech by Federal Reserve Chair Jerome Powell that could impact the outlook for interest rates.
Reports on durable goods orders and initial jobless claims are likely to attract attention on Thursday, although trading activity may be somewhat subdued as the Jackson Hole summit gets underway later in the day.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2217082/
Oil Futures Settle Lower As Weak Economic Data Triggers Demand Concerns
Despite data showing a drop in U.S. crude inventories in the week ended August 18th, crude oil futures settled lower on Wednesday amid concerns about the outlook for oil demand after data showed a contraction in global manufacturing activity.
West Texas Intermediate Crude oil futures for October ended lower by $0.75 or about 0.9% at $78.89 a barrel.
Brent crude futures dropped $0.82 or nearly 1% at $83.21 a barrel.
Data from U.S. Energy Information Administration (EIA) showed crude inventories in the U.S. fell by 6.1 million barrels last week, more than twice the expected drop of 2.8 million barrels.
Gasoline stockpiles climbed 1.5 million barrels last week, as against forecast for a 888,000 barrel drop.
"The oil market is going to remain tight over the short-term and unless we see a prolonged slowdown in demand, crude prices will likely find a home above the $80 level," says Edward Moya, Senior Market Analyst at OANDA.
"If dollar weakness emerges from Jackson Hole, that could be the catalyst to send oil back to last month's highs," Moya adds.
S&P Global released data showing a slowdown in the pace of growth in U.S. service sector activity in the month of August as well as a contraction in manufacturing activity during the month.
Eurozone business activity contracted further in August as the region's downturn spread further from manufacturing to services, according to PMI survey data published earlier today.
The S&P Global composite index flash reading fell to 47.0 from 48.6 in July, hitting its lowest since November 2020.
The U.K. manufacturing PMI fell from 45.3 to 41.5 in August, hitting a 39-month low, while the services PMI fell from 51.5 to 48.7, touching a 7-month low.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2217081/
Gold Futures Settle Higher As Dollar, Bond Yields Drop
Gold futures settled notably higher on Wednesday as the dollar shed ground and bond yields dropped.
Gold prices climbed higher as data showing contraction in business activity in most of the major economies across the globe triggered safe-haven buying.
Investors also looked ahead to the Jackson Hole Symposium, scheduled to take place later in the week.
The dollar index, which surged to 103.93, tumled to 103.30, losing about 0.25%.
Gold futures for December ended higher by $22.10 or about 1.2% at $1,948.10 an ounce.
Silver futures for September ended up $0.942 at $24.392 an ounce, while Copper futures for September settled at $3.8085 per pound, gaining $0.0515.
The economic symposium in Jackson Hole, Wyoming, later this week will feature meetings by global central bank leaders as well as a speech by Federal Reserve Chair Jerome Powell, with traders hoping for some clarity on the Fed's plans to keep inflation on a downward path.
"The US economy is weakening, not as much as Europe, so that should provide some relief from the surge with global bond yields," says Edward Moya, Senior Market Analyst at OANDA. "Gold could have a major rebound if we see a short squeeze in the bond market, but a longer-term bullish trend seems unlikely as interest rates will likely stay higher-for-longer."
S&P Global released data showing a slowdown in the pace of growth in U.S. service sector activity in the month of August as well as a contraction in manufacturing activity during the month.
Eurozone business activity contracted further in August as the region's downturn spread further from manufacturing to services, according to PMI survey data published earlier today.
The S&P Global composite index flash reading fell to 47.0 from 48.6 in July, hitting its lowest since November 2020.
The U.K. manufacturing PMI fell from 45.3 to 41.5 in August, hitting a 39-month low, while the services PMI fell from 51.5 to 48.7, touching a 7-month low.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2217080/
Wednesday, 23 August 2023
Asia Day Ahead: Elevated Yields, Weaker Wall Street Handover Keeps Wait-and-See in Place
Dollar Firms Against Major Counterparts
The U.S. dollar firmed against most of its major counterparts on Tuesday as traders looked ahead to the Jackson Hole Symposium, scheduled to take place later in the week.
Several bankers are scheduled to take part in the meeting. Fed Chair Jerome Powell will speak on Friday. Powell's comments will be closely scrutinized for signals on the central bank's interest rate plans in the near future.
A report released by the National Association of Realtors showed existing home sales in the U.S. slumped by much more than expected in the month of July.
NAR said existing home sales tumbled by 2.2% to an annual rate of 4.07 million in July after plunging by 3.3% to an annual rate of 4.16 million in June. Economists had expected existing home sales to edge down to an annual rate of 4.15 million.
Existing home sales decreased for the fourth time in the past five months, falling to their lowest annual rate since hitting 4.00 million in January.
The dollar index climbed to 103.72 earlier in the day. The index gave up some gains subsequently and was at 103.59 a little while ago, gaining about 0.28%.
Against the Euro, the dollar has strengthened to 1.0850 from 1.0896. The dollar is up against Pound Sterling at 1.2736, gaining from 1.2756.
The Japanese currency is firm against the dollar at 145.86 yen, gaining from 146.22 yen a dollar. Against the Aussie, the dollar is weak at 0.6423, and against Swiss franc it has firmed to fetch CHF 0.8806 a unit, compared to CHF 0.8785 a unit on Monday.
The dollar is up marginally against the loonie at $1.3554.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2217017/
Gold Price Steadies Despite Treasury Yields and US Real Yields Rising. Lower XAU/USD?
Gold Futures Settle Higher For 3rd Straight Session
Gold futures settled higher on Tuesday, gaining for a third straight session.
Gold found some support after yields on 10-year U.S. Treasury Note dropped from a sixteen-year high, dropping to 4.301% before recovering to around 4.315%.
The dollar's recovery from lower levels limited the yellow metal's upside.
The dollar index, which dropped to 103.01 in the Asian session, climbed to 103.72 around mid morning and despite paring some gains subsequently, remained positive at 103.54 with a gain of nearly 0.25%.
Gold futures for December ended higher by $3.00 or about 0.2% at $1,926.00 an ounce.
Silver futures for September ended up by $0.110 at $23.450 an ounce, while Copper futures for September settled at $3.7570 per pound, gaining $0.0385.
Investors look ahead to the symposium at Jackson Hole in Wyoming. The symposium will feature meetings by global central bank leaders as well as a speech by Federal Reserve Chair Jerome Powell that could impact the outlook for interest rates.
The CME FedWatch tool currently shows a probability of 15.5% for a rate hike of 25 basis points in the review due on September 20, versus 14% a day earlier. The probability for a quarter-point rate hike in November is however higher at 39.9%, rising from 38% a day earlier.
On the U.S. economic front, the National Association of Realtors released a report showing existing home sales in the U.S. slumped by much more than expected in the month of July.
NAR said existing home sales tumbled by 2.2% to an annual rate of 4.07 million in July after plunging by 3.3% to an annual rate of 4.16 million in June. Economists had expected existing home sales to edge down to an annual rate of 4.15 million.
Existing home sales decreased for the fourth time in the past five months, falling to their lowest annual rate since hitting 4.00 million in January.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2217014/
Tuesday, 22 August 2023
US Dollar Looks Tired Ahead of Jackson Hole: EUR/USD, GBP/USD, USD/JPY Price Setups
Asia Day Ahead: Heavy-Lifting from US Tech Overnight as Nvidia Results in Focus
Monday, 21 August 2023
JPY Intervention Levels Assessed Ahead of Jackson Hole, Yen Offered
Gold (XAU/USD) Remains Weak, Eyes Now on the Jackson Hole Central Banker Meet Up
GBP/USD with Modest Gains but Remains at the Mercy of the DXY
Stock Indices Steady as PBOC Reduces its 1-Year Loan Prime Rate to a Record Low
Euro Steadies as Hang Seng Tanks on PBOC’s Shallow Cut. Lower EUR/USD?
New Zealand Dollar Reverses Gains After PBOC Move; NZD/USD, AUD/NZD, GBP/NZD Setups
US indices attempt to stabilise, while China’s loan prime rates delivered more modest response: Nasdaq 100, Hang Seng Index, US dollar
Crude Oil Price Wanes with a Higher US Dollar and Treasury Yields. Where to for WTI?
Sunday, 20 August 2023
Markets Week Ahead: Gold, US Dollar, Nasdaq 100, Treasury Yields, Jackson Hole, China
XAU/USD Price Forecast: Is the Tide Turning for Gold?
Friday, 18 August 2023
Bitcoin (BTC), Ethereum (ETH) Slump to Multi-Month Lows, Volatility Back With a Vengeance
EUR/GBP, GBP/USD Update: GBP Slides as UK Retail Sales Disappoints
Stock Indices Hit by More China Property Woes
USD/JPY Drops as Evergrande Bankruptcy Application Spurs Safety Bid
US Indices’ Rally is Cracking: S&P 500, Nasdaq Price Action
Higher Treasury yields, China’s woes kept the pressure on risk sentiments: S&P Regional Banking ETF, Nikkei 225, GBP/EUR
Thursday, 17 August 2023
USD/JPY, EUR/JPY Update: A Temporary Pause Before Bullish Continuation?
Nasdaq 100, Dow and Nikkei 225 hit one-month low as China worries intensify
XAU/USD Forecast: Real Yields Continue to Suppress Gold Prices
HK/China Equities Test the Line in the Sand; Hang Seng, CSI 300 Price Setups
Euro Vulnerable Against a Runaway US Dollar with Treasury Yields Jumping
Hawkish Tilt in Fed Minutes, While Trade Data in Asia Weakened: Gold, USD/SGD, US Dollar
Wednesday, 16 August 2023
AUD Selloff Persists: AUD/NZD, AUD/USD and AUD/JPY Price Setups
Stock Indices Continue to Slide on China Growth Worries and Bank Downgrades
Gold (XAU/USD) Flirts with $1900 Support as Fed Minutes Loom
GBP Breaking News: UK Inflation Remains Sticky, September Hike Likely
Crude Oil Collapses as China Woes and US Dollar Strength Take its Toll
Euro Ahead of Euro Area GDP, FOMC Minutes: EUR/USD, EUR/AUD, EUR/GBP Price Setups
Tuesday, 15 August 2023
FTSE 100, Dow and Hang Seng All Come Under Pressure
USD Price Forecast: DXY Trades at Key Inflection Point, Retails Sales to Come
BoE Faces Pressure Following Average Earnings Spike as Unemployment Rises, GBP/USD Bid
Australian Dollar Defies Gravity with Action Out of China, the PBOC and Japan
Market relief in Wall Street amid China’s jitters: Russell 2000, Straits Times Index, AUD/USD
Gold Price Loses its Lustre as the US Dollar and Treasury Yields Climb. Lower XAU/USD?
Monday, 14 August 2023
FTSE 100 Hit by Selling, but Dax and Nasdaq 100 Show Signs of Stabilising
EUR/USD Eyes Short-Term Retracement as DXY Runs Into Confluence Area
Japanese Yen Hits New Lows as US Dollar Flexes on Higher Treasury Yields
Is Nasdaq Following Gold’s Footsteps? NDX, XAU/USD Price Setups
Asia Day Ahead: Cautious Tone to Start the Week: Brent crude, China A50, USD/JPY
Australian Dollar Decline Pushes it to Bottom of the Range. Will AUD/USD Bounce?
Sunday, 13 August 2023
Markets Week Ahead: US Dollar, Gold, Crude Oil, Nasdaq 100, RBNZ, FOMC Minutes, CPI
Friday, 11 August 2023
Oil Update: OPEC Monthly Report Points to Tighter Oil Market, Cuts Continue
Indices Little-Changed After Post-US CPI Volatility
AUD/USD Technical Outlook: Further Pain in Store for the Aussie Dollar?
British Pound (GBP) Latest: UK GDP Data Beats Estimates, Sterling Undecided
How Much More to Go in Crude Oil? Is There More Upside in Natural Gas?
Thursday, 10 August 2023
Breaking News - US Dollar Slips After Inflation Data Miss Forecasts
US Dollar (DXY) Listless as the Latest US Inflation Report Nears
Nasdaq 100 and S&P 500 Edge Higher Ahead of US CPI, Nikkei 225 Rallies Above 32,000
GBP/USD Hovers at Key Inflection Point Ahead of Inflation and GDP Data
Bitcoin & Ethereum Hold Ground Ahead of US CPI: BTC/USD & ETH/USD Price Setups
Crude Oil Catapults to New Highs While the US Dollar Steadies Ahead of CPI. Higher WTI?
Wednesday, 9 August 2023
Pressured British Pound Holds On Above $1.27 As US CPI Data Loom
Gold, Silver Techs: Precious Metals Ease Despite Softer USD, Yields
Oil Testing Fresh Multi-Month Highs, EIA Crude Oil Data
Euro Outlook Improves on Bank Tax Clarity: EUR/USD, EUR/JPY, EUR/AUD
FTSE 100, Dax and Dow Move Higher in Early Trading
British Pound (GBP) Latest: EUR/GBP and GBP/NZD Outlooks
Australian Dollar Finds Footing Despite Evolving China Concerns. Is AUD/USD Range Bound?
Tuesday, 8 August 2023
Nasdaq 100 and CAC40 Struggle to Move Higher, Hang Seng Falls Again After Weak China Data
AUD Price Forecast: Aussie Hit by China Trade Data
Euro Stalls with the US Dollar Gaining on Higher Treasury Yields. Lower EUR/USD?
New Zealand Dollar Ahead of US CPI; NZD/USD, AUD/NZD, EUR/NZD Price Action
Warm Start to the Week, but Lead-Up to China’s Trade Data Brings Some Caution: S&P 500, China A50, Natural Gas
Crude Oil Crossroads Ahead as Markets Eye New Highs. Will WTI Overcome Resistance?
Monday, 7 August 2023
Yen Price Outlook: USD/JPY up After BoJ Minutes, GBP/JPY Consolidates
Canadian Dollar Outlook: USD/CAD, GBP/CAD Rise, Is the Oil Correlation Dead?
Gold (XAU/USD) and Silver (XAG/USD) Latest Forecasts as US Bond Yields Rise
FTSE 100, Dax and Dow Losses Stemmed for Now
EUR/USD Price Forecast: Euro on Offer as German Industrial Production Contracts
US Dollar Struggles to Hold Gains Ahead of CPI: EUR/USD, GBP/USD, USD/JPY Price Setups
Asia Day Ahead: Asia on a Cautious Tone Following Wall Street’s Reversal: Nasdaq 100, USD/JPY, AUD/USD
Sunday, 6 August 2023
Markets Week Ahead: British Pound, Euro, Gold, US Dollar, CPI and GDP Data
Friday, 4 August 2023
Euro Price Outlook: EURUSD on Breakout Watch, EURGBP Range Continues
FTSE 100, Dax and Nasdaq 100 Move Cautiously Higher
AUD/USD, GBP/AUD Analyzed as AUD Eyes a Recovery Post RBA Statement
British Pound Could Stage a Rebound: GBP/USD, EUR/GBP, GBP/JPY Price Setups After BOE
After-market relief in Wall Street, with look-ahead to US job report: US dollar, Straits Times Index, Copper
Gold Price Ponders Direction as the US Dollar and Treasury Yields Eye Higher Levels
Thursday, 3 August 2023
US Indices Rally Beginning to Crack? S&P 500, Nasdaq Price Setups
Australia Trade Data Due On Thursday
Australia will on Thursday release June figures for imports, exports and trade balance, highlighting a light day for Asia-Pacific economic activity. In May, imports were up 2.0 percent on month and exports rose 4.0 percent for a trade surplus of A$11.791 billion.
Australia also will see Q2 numbers for retail sales, with forecasts suggesting a decline of 1.8 percent on quarter following the 0.6 percent drop in the three months prior.
Finally, some of the regional nations will see July results for their respective services PMIs from S&P Global, including Australia, Japan (Jibun), Hong Kong (private sector), Singapore (private sector), and China (Caixin).
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2216135/
Asia Day Ahead: Downbeat Handover from Wall Street: Nikkei 225, GBP/USD, Nasdaq 100
Dollar Extends Gains Against Major Counterparts
The U.S. dollar firmed against is major counterparts on Wednesday, with traders reacting to data showing a stronger than expected growth in U.S. private sector employment in July.
Fitch's downgrade of the U.S.' sovereign credit rating hurt risk sentiment and prompted traders to seek the safe-haven greenback.
Fitch lowered the U.S. debt rating to 'AA+' from 'AAA', pointing to a steady deterioration in standards of governance.
The rating agency said the downgrade reflected the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the repeated debt limit impasses.
Data from payroll processor ADP showed that private sector employment rose by 324,000 jobs in July, after surging by a downwardly revised 455,000 jobs in June.
Private sector employment was expected to increase by 189,000 jobs, compared to the spike of 497,000 jobs originally reported for the previous month.
The dollar index climbed to 102.78 around mid morning, and at 102.64, remains firmly above the flat line, gaining about 0.33%.
Against the Euro, the dollar strengthened to 1.0939, gaining from 1.0984. The dollar is up at 1.2709 against Pound Sterling, firming from 1.2776.
Against the Japanese currency, the dollar is down marginally at 143.36 yen. The dollar is up sharply against the Aussie at 0.6538, and is up against Swiss franc, fetching CHF 0.8778 a unit. With oil prices falling sharply, the Loonie has weakened to 1.3354 against the dollar.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2216134/
Crude Oil Crunched as Markets Recoil from Fitch Downgrade. Lower WTI?
Treasuries Climb Well Off Worst Levels But Still Close Lower
After coming under pressure early in the session, treasuries regained some ground over the course of the trading day on Wednesday.
Bond prices climbed well off their early lows but still ended the day in negative territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose 2.7 basis points to 4.078 percent after hitting a high of 4.126 percent.
The ten-year yield still added to the 9.2 basis point jump seen on Tuesday, reaching its highest closing level since last November.
The early weakness among treasuries came after credit rating agency Fitch Ratings unexpectedly downgraded the United States' credit rating.
Fitch downgraded the U.S.' long-term foreign-currency issuer default rating to AA+ from AAA, citing a "steady deterioration in standards of governance over the last 20 years."
"The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management," Fitch said.
The move drew a strong response from the U.S., with Treasury Secretary Janet Yellen calling the change "arbitrary and based on outdated data."
A payroll processor ADP showing U.S. private sector employment jumped by much more than expected in the month of July also weighed on treasuries amid renewed concerns about the outlook for interest rates.
ADP said private sector employment shot up by 324,000 jobs in July after surging by a downwardly revised 455,000 jobs in June.
Economists had expected private sector employment to increase by 189,000 jobs compared to the spike of 497,000 jobs originally reported for the previous month.
Reports on weekly jobless claims, labor productivity, service sector activity and factory orders may attract attention on Thursday, although trading activity is likely to be somewhat subdued ahead of the release of the Labor Department's more closely watched monthly jobs report on Friday.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2216132/
Gold Futures Fail To Hold Early Gains, Settle Modestly Lower
Gold futures failed to hold early gains and ended weak on Wednesday as the dollar gained in strength.
Gold prices surged higher earlier in the day, supported by Fitch's downgrade of the U.S. credit rating, and recent data showing a slowdown in global manufacturing activity in July.
The dollar index climbed to 102.78 before easing to 102.56, but still remained positive, gaining about 0.25%.
Gold futures for December ended lower by $3.80 at $1,975.00 an ounce.
Silver futures for September ended down $0.454 at $23.872 an ounce, while Copper futures for September settled lower by $0.0650 at $3.8435 per pound.
Fitch Ratings downgraded U.S.' sovereign credit rating, citing fiscal deterioration and repeated debt ceiling standoffs.
The agency downgraded the U.S. credit rating by one notch to AA+, citing high debt burden at the federal, state, and local levels and a concerning decline in governance standards over the last two decades.
In U.S. economic news, payroll processor ADP released a report showing U.S. private sector employment jumped by much more than expected in the month of July.
ADP said private sector employment shot up by 324,000 jobs in July after surging by a downwardly revised 455,000 jobs in June.
Economists had expected private sector employment to increase by 189,000 jobs compared to the spike of 497,000 jobs originally reported for the previous month.
"The economy is doing better than expected and a healthy labor market continues to support household spending," said ADP chief economist Nela Richardson. "We continue to see a slowdown in pay growth without broad-based job loss."
While the report points to continued strength in the U.S. labor market, the data may lead to renewed concerns about the outlook for interest rates.
"The gold market is going to struggle as long as re-steepening of the US curve continues. The VIX is rising and it seems Wall Street is getting nervous here," says Edward Moya, Senior Market Analyst at OANDA.
"Gold will eventually act like a safe-haven as stocks remain vulnerable given rising downbeat outlooks and as the UAW labor strike risks grow following the ambitious demands provided by the UAW president," adds Moya.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2216131/
Wednesday, 2 August 2023
New Zealand Unemployment Data Due On Wednesday
New Zealand will on Wednesday release unemployment figures for the second quarter of 2023, headlining a modest day for Asia-Pacific economic activity.
The jobless rate is expected to tick up to 3.5 percent from 3.4 percent in the previous three months, while employment is expected to add 0.6 percent on quarter after rising 0.8 percent in Q1. The participation rate is called steady at 72.0 percent.
South Korea will provide July figures for consumer prices, with forecasts suggesting an increase of 0.2 percent on month and 2.4 percent on year. That follows the flat monthly reading and the 2.7 percent yearly gain in June.
The Bank of Japan will release the minutes from its monetary policy meeting on June 15 and 16. At the meeting, the BoJ unanimously voted to maintain a negative interest rate of 0.1 percent on current accounts that financial institutions maintain at the central bank. The board also decided to continue to purchase a necessary amount of Japanese government bonds without setting an upper limit so that 10-year JGB yields will remain at around zero percent.
Japan also will see July data for its monetary base, with forecasts suggesting a decline of 0.9 percent following the 1.0 percent decline in June.
The central bank in Thailand will wrap up its monetary policy meeting and then announce its decision on interest rates. The central bank is widely expected to hike its benchmark lending rate by 25 basis points, from 2.00 percent to 2.25 percent.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2216088/
Euro Lifted Slightly by US Downgrade, but Will it Last? EUR/USD, EUR/AUD, EUR/NZD Price Action
Oil Futures Settle Lower Ahead Of Inventory Data
Despite coming off lower levels during the latter part of the day's session, crude oil futures ended on a weak note on Tuesday.
Profit taking after recent strong gains, and data showing a slowdown in global manufacturing activity contributed to the drop in oil prices.
A firm dollar weighed as well on oil prices.
West Texas Intermediate Crude oil futures for September ended lower by $0.43 at $81.37 a barrel.
Brent crude futures were down $0.44 or 0.52% at $84.99 a barrel a little while ago.
In U.S. economic news, a report released by the Institute for Supply Management showed U.S. manufacturing activity contracted for the ninth consecutive month in July.
The ISM said its manufacturing PMI crept up to 46.4 in July from 46.0 in June, but a reading below 50 continues to indicate contraction. Economists had expected the index to inch up to 46.8.
The Commerce Department also released a report showing construction spending rose by slightly less than expected in the month of June.
In Asia, a private survey showed today that factory activity in China, the world's largest importer of crude, fell into contraction territory for the first time since April.
Another report showed that average new home prices in 100 Chinese cities fell for a third consecutive month in July.
Japan, South Korea, Taiwan and Vietnam also saw manufacturing activity contracting in July, raising fresh concerns about Asia's fragile economic recovery.
In Europe, the HCOB Eurozone Manufacturing PMI fell to 42.7 in July from 43.4 in the previous month, marking the lowest in three years.
U.K. factory output fell at the fastest pace in seven months in July, hit by higher interest rates while British retail sales fell in July at the fastest rate since April 2022, separate reports showed.
Investors await weekly oil reports from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA). The API data is due later today, while the EIA will release its weekly inventory data on Wedneday.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2216086/
Gold Price Takes a Tumble as US Dollar Gains Post Fitch Downgrade. Lower XAU/USD?
Ten-Year Yield Jumps To Five-Month Closing High
Treasuries moved sharply lower over the course of the trading day on Tuesday, more than offsetting the uptick seen in the previous session.
Bond prices came under pressure early in the session and saw further downside as the day progressed. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 9.2 basis points to 4.051 percent.
With the significant increase on the day, the ten-year yield ended the session at its highest closing level in five months.
The weakness among treasuries may have reflected renewed concerns about the outlook for interest rates following the latest economic data.
A report released by the Labor Department earlier in the day showed job openings edged down 9.58 million in June from 9.62 million in May.
While job openings fell to their lowest level since April 2021, Matthew Martin, U.S. Economist at Oxford Economics, questioned whether they are decreasing fast enough for the Federal Reserve.
"Fed officials signaled they would remain data dependent in determining the path forward for monetary policy, and June's report likely doesn't offer a large amount of evidence of significant labor market cooling," Martin said.
"The Fed is likely to put more weight on July's employment report due out on Friday, but here too we only anticipate marginal cooling, with job gains estimated to have fallen to 205k from 209k the previous month," he added. "These would leave the risks of additional rate hikes tilted to the upside."
Meanwhile, a separate report released by the Institute for Supply Management showed U.S. manufacturing activity contracted for the ninth consecutive month in July.
The ISM said its manufacturing PMI crept up to 46.4 in July from 46.0 in June, but a reading below 50 continues to indicate contraction. Economists had expected the index to inch up to 46.8.
The Commerce Department also released a report showing construction spending rose by slightly less than expected in the month of June.
A report on private sector employment may attract attention on Wednesday ahead of the release of the Labor Department's more closely watched report on Friday.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2216085/
Gold Futures Settle Lower As Dollar Rises
Gold prices drifted lower on Tuesday as the dollar firmed on safe-haven appeal, and treasury yields climbed up after data showed a contraction in manufacturing activity in Asia, Europe and the U.S.
The dollar index surged to 102.43 this morning, and despite easing a bit to 102.32, remains firm with a gain of about 0.5%.
Gold futures for December ended down $30.40 at $1,978.80 an ounce.
Silver futures for September ended lower by $0.646 at $24.326 an ounce, while Copper futures for September settled at $3.9085 per pound, losing $0.0995.
In U.S. economic news, a report released by the Institute for Supply Management showed U.S. manufacturing activity contracted for the ninth consecutive month in July.
The ISM said its manufacturing PMI crept up to 46.4 in July from 46.0 in June, but a reading below 50 continues to indicate contraction. Economists had expected the index to inch up to 46.8.
The Commerce Department also released a report showing construction spending rose by slightly less than expected in the month of June.
A separate report released by the Labor Department showed job openings edged down 9.58 million in June from 9.62 million in May.
The HCOB Eurozone Manufacturing PMI fell to 42.7 in July from 43.4 in the previous month, marking the lowest in three years.
The British manufacturing downturn deepened in July as output, new orders and employment all fell at faster rates amid market weakness, both domestically and internationally, survey results from S&P Global revealed Tuesday.
The Chartered Institute of Procurement & Supply Manufacturing Purchasing Managers' Index, or PMI, dropped to a seven-month low of 45.3 in July from 46.5 in May. The flash estimate was 45.0.
The manufacturing sector in China fell into contraction territory in July, the latest survey from Caixin revealed on Tuesday with a manufacturing PMI score of 49.2. That's down from 50.5 in June and it moves beneath the boom-or-bust line of 50 that separates expansion from contraction.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2216084/
Tuesday, 1 August 2023
British Pound Toppish Ahead of BOE: GBP/USD, GBP/AUD, GBP/NZD Price Setups
Australia Rate Decision On Tap For Tuesday
The Reserve Bank of Australia will wrap up its monetary policy meeting on Tuesday and then announce its decision on interest rates, highlighting a busy day for Asia-Pacific economic activity. The RBA is expected to hike its benchmark lending rate by 25 basis points, from 4.10 percent to 4.35 percent.
Australia also will see June figures for building approvals, home loans and commodity prices. In May, approvals were up 20.6 percent on month and down 2.6 percent on year, while home loans gained 4.0 percent on month. Commodity prices are tipped to slide 19.0 percent on year after shedding 21.5 percent in the previous month.
Japan will provide June numbers for unemployment; the jobless rate is expected to ease to 2.5 percent from 2.6 percent in May, with the job-to-applicant ratio improving to 1.32 from 1.31.
South Korea will release June numbers for imports, exports and trade balance. Imports are expected to tumbled 24.6 percent on year after slipping 11.7 percent in May. Exports are called lower by an annual 14.5 percent after shedding 6.0 percent in the previous month. The trade surplus is pegged at $3.03 billion, up from $1.13 billion a month earlier.
Hong Kong will provide June numbers for retail sales, with forecasts calling for an increase of 26.7 percent on year, accelerating from 18.4 percent in May.
Indonesia will release June numbers for consumer prices, with forecasts suggesting an annual increase of 3.11 percent for overall inflation and 2.50 percent for core CPI. In May, overall inflation rose 3.52 percent on year and core CPI added 2.58 percent.
A number of the regional nations are scheduled to see July results for their respective manufacturing PMIs from S&P Global, including Australia (Judo Bank), Indonesia, Japan (Jibun Bank), Malaysia, the Philippines, South Korea, Taiwan, Vietnam and China (Caixin).
Finally, the markets in Thailand are closed on Tuesday for Asarnha Bucha Day and will re-open on Wednesday.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2215984/
Wall Street Drifts Higher Overnight, RBA Meeting in Focus: Russell 2000, Hang Seng Index, Brent Crude
Dollar Rises Against Major Counterparts
The U.S. dollar gained against most of its major counterparts on Monday with investors assessing the strength of the economy and the outlook for interest rates following recent data showing a drop in consumer price inflation.
Investors also noted the Senior Loan Office Opinion Survey from the Federal Reserve that showed U.S. banks reported tighter credit standards and weaker loan demand in the the second quarter.
The market awaits the non-farm payroll data for the month of July later this week.
MNI Indicators said its Chicago business barometer inched up to 42.8 in July from 41.5 in June, although a reading below 50 still indicates a contraction. Economists had expected the index to rise to 43.0.
The dollar index surged to 101.90, gaining nearly 0.3%.
Against the Euro, the dollar has firmed to 1.0996 from 1.1019. The dollar is up at 1.2835 against Pound Sterling, firming from 1.2849.
Against the Japanese currency, the dollar has strengthened to 142.27 yen, rising from 141.15 yen a unit. The Aussie is stronger against the dollar with the AUDUSD pair at 0.6717.
Against Swiss franc, the dollar is up, fetching CHF 0.8718 a unit, compared to CHF 0.8615 on Friday. The dollar is weak against the loonie at C$1.3191 as oil prices rose sharply on optimism about energy demand prospects.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2215983/
Crude Oil Punches Higher as OPEC+ Cuts Bite and Economic Outlook Brightens
Gold Futures Settle Modestly Higher
Gold futures settled higher on Monday amid optimism that major central banks are approaching the end of tightening cycles.
Data showed on Friday that the Fed's favorite inflation gauge slowed to a two-year low in June, easing concerns about the outlook for interest rates.
A firm dollar limited the yellow metal's upside. The dollar index, which dropped to 101.53 around mid morning, recovered to 101.82 later on in the session, gaining nearly 0.2%.
Gold futures for December ended higher by $9.30 at $2,009.20 an ounce.
Silver futures for September ended up $0.472 at $24.972 an ounce, while Copper futures for September settled at $4.0080 per pound, gaining $0.0815.
"Gold prices are attempting a bullish break out as optimism grows that the major central banks are all approaching the end of their tightening cycles," says Edward Moya, Senior Market Analyst at OANDA. "The RBA might be one-and-done this week and the BOE might be done after a couple more. The Fed is clearly waiting on the data, but they might be done if inflation plays nice."
Moya added that golds' rally could extend if growth prospects turn sour. "If Wall Street starts aggressively in rate cuts by the first quarter of 2024, gold could easily find a home above the $2000 level," he says.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2215980/