Market themes of the Day: Data weak Monday

Mario Blascak, PhD Independent Analyst

What you need to know before markets open
In Europe

The fear of the economic downturn in Turkey roiled markets sending a shock wave of the risk-off sentiment as the ECB reportedly said it is concerned about exposure of the Eurozone banks including BBVA, UniCredit, BNP in Turkey.
Turkey says it has the action plan to ease market concerns; lira firms from the record low.
Italian CPI scheduled for Monday is unlikely to influence the markets.

In the UK

The UK Q2 GDP rose 0.4% Q/Q while increasing 1.3% y/y, meeting the market forecast. For details read my Analysis here.

In the US

While headline US inflation decelerated to 2.9% y/y in July, core inflation accelerated to 2.4% y/y. For details read Yohay's Analysis here.

Author

Mario Blascak, PhD

Independent Analyst

Dr. Mário Bla&scaron;čák worked in professional finance and banking for 15 years before moving to journalism. While working for Austrian and German banks, he specialized in covering markets and macroeconomics.

EUR/USD remains bid, focus stays on 1.1900

EUR/USD has broken its two-day run of losses and is ticking modestly higher on Thursday, hovering around the 1.1880 area as the US Dollar struggles to find clear direction. Weekly Initial Jobless Claims rose more than expected, taking a bit of shine off the Greenback, but markets are largely in wait-and-see mode ahead of Friday’s US CPI release.

GBP/USD sticks to the bid bias, still below 1.3700

GBP/USD is trading with decent gains around 1.3650 on Thursday. Indeed, Cable is attempting to shake off the weakness seen earlier in the week amid another choppy session for the Greenback, while a run of disappointing UK data has so far failed to derail the pair’s tentative recovery.

Gold recedes slightly, trades below $5,100

Gold remains stuck in choppy trade on Thursday, deflating marginally just below the $5,100 mark per troy ounce as the US Dollar drifts without a clear trend. Softer US Treasury yields across the curve are offering some support, but with markets treading carefully ahead of Friday’s US CPI release, conviction remains limited and price action continues to look hesitant.