United States Dollar:
The US dollar strengthened yesterday, after U.S. durable goods data jumped in July. Demand for these goods rose by 22.6% from the previous month, and was the biggest rise on record. An increase in commercial aircraft demand was one of the biggest contributors. U.S. CB Consumer Confidence data was also positive, and the index rose from 90.3 in July to 92.4 in August. GBP/USD fell to a low of 1.6538 overnight on the news, remaining on the back foot throughout most of the Asian session. The pair has bounced back a little this morning to open at 1.6565. U.S. Preliminary GDP, Unemployment Claims and Pending Home Sales are all due for release tomorrow, and up until this point the range in cable is likely to be fairly flat.
Euro:
EUR/USD fell to a low of 1.3153 overnight, again in response to the stronger-than-expected U.S. economic data released yesterday afternoon. There was good protection down at 1.3150, and the pair has since bounced back to open in Europe at 1.3185. This mild bounce has also been supported in part by news that the Russian and Ukrainian presidents have sat down for talks. Although there was no vow to stop fighting in the region, the Ukrainian leader Poroshenko said that a roadmap for peace would be prepared. The euro has also fallen a little versus the pound, and GBP/EUR trades this morning at 1.2565.
Aussie and Kiwi Dollars:
NZD/USD has been the standout performer overnight. This was in reaction to news that Fonterra, New Zealand’s biggest exporter and the world’s largest dairy exporter, said that it planned to buy a 20% stake in a Chinese children’s food manufacturer to help meet growing demand for infant formula in the country. The company also announced that it would be expanding its milk powder operations in NZ. NZD/USD pushed up from .8317 and opens this morning at .8375. AUD/USD has also ticked higher, up from .9297 overnight – it trades this morning at .9335. This has come despite the release of weaker-than-expected local construction data overnight.
Date Releases for the next 24 hours:
AUD: HIA New Home Sales m/m, Private Capital Expenditure q/q
EUR: No data
GBP: No data
NZD: No data
USD: Crude Oil Inventories
Recommended Content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold price sits at all-time highs above $2,230, US PCE eyed
Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.