U.S. Review
U.S. Economy Keeps on Trucking
- The housing recovery remains on track with existing home sales rising 2.0 percent in July and starts continuing to rise.
- Early readings on the manufacturing sector for August were mixed, but on balance suggest activity in the factory sector continues to expand at a modest pace.
- The consumer price index came in a bit lower than expected for July but the trend in inflation remains steady. Minutes from the July FOMC meeting showed “some” Fed officials were not yet confident that inflation is moving back to target, but “most” noted conditions for liftoff were “approaching.”
Global Review
Disconcerting Drop in Chinese PMI- A widely followed measure of Chinese private sector manufacturing activity fell in August. The weaker-than-expected 47.1 figure marks the lowest reading since the global recession in 2009 and sparked a fresh round of selling in what was already a rout in global financial markets. The volatility in emerging markets is the Topic of the Week on page 7.
- In the Global Review on page 4, we highlight major developments for the global economy including Japanese GDP and what the latest inflation data in the U.K. and Canada mean for monetary policy in those economies.
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Editors’ Picks
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
Google starts indexing Bitcoin addresses
Bitcoin address data is live on Google search results after users realized on Thursday that the tech giant started indexing Bitcoin blockchain data. However, mixed reactions have followed the tech giant's reversed stance on the cryptocurrency.
A Hollywood ending for fourth quarter GDP
The latest revisions put Q4 GDP at 3.4%, the second fastest quarterly growth rate in two years. Much of the upside was attributable to stronger consumer spending, yet fresh profits data affirmed it was a good quarter for the bottom line as well with profits up by the most since the Q2-2022.