Current Sentiment:
Yesterday during NY, the USD rebound continued after the US GDP printed better than expected at 3.7%, and weekly jobless claims remained at rock bottom levels. Risk sentiment also seemed to improve a bit further with US and European Equities continuing to rally. These developments helped to push the USDJPY north of 121.00 on the session where it is currently finding some resistance and is now trading at 120.99 at the time of this writing. The EURUSD moved as low as 1.1200 on the session before finding some bids at the figure.
WTI has continued to rally strong currently trading $5.70 off of this weeks low. We continue to see CAD strength across the board as a result.
During Asia we saw data from Japan including CPI figures, Household Spending, Retail Sales, and the Unemployment Rate. Tokyo Core CPI came in unchanged as expected at -0.1%, the Unemployment Rate printed better than estimates at 3.3%, and retails sales also came in higher at 1.6%. July national consumer prices printed at 0.0%. Japan continues to struggle with deflation, and at these levels the Bank of Japan's 2% inflation target continues to look some way off and will put pressure on policy makers to consider increasing their quantitative easing program.
On tap for today we have Swiss GDP, German and Spanish CPI, and UK Second Estimate GDP during early London. Then later after NY opens we will see RMPI out of Canada, along with US Goods Trade Balance, Core PCE and Consumption, and Revised UoM Consumer Sentiment. It is also day 2 of the Jackson Hole Symposium.
At no time should anyone view the information presented anywhere on this website as advice, recommendation or proven. Everything reflected is merely opinion and may not be accurate. The purpose of the site is to express the opinions and views of Jarratt Davis. There is no intention to offer specific help, advice or suggestions to anyone reading any of the content posted here.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.