Monthly construction output fell a further 0.2% in August with the level of output now reaching 1.5% below its pre-pandemic level. Meanwhile, new work remained flat this month with repair and maintenance falling slightly. Today's data further illustrates the current challenges faced by the economy, with factors like supply chain issues, labour shortages and rising fuel prices continuing to hold back the post pandemic recovery heading into the final quarter. If the situation continues, we could be seeing some measures introduced to deal with the slowing pace of recovery in order to support the economy more effectively in the coming months.
Major banks start Wall Street earning season
As always, earnings season in the US begins with major financial institutions and today investors will receive earnings reports from JP Morgan as well as Blackrock. This is a very important time in markets as investors will be looking closely to see how companies performed during recent economic uncertainty brought on by supply issues, rising fuel prices and unclear monetary policy. While today’s results could have a limited impact on stock markets, they will be worth following as the FED continues to remain ambiguous in regards to a timeline for tapering, which it said would be announced once the economic data suggests continued growth and sustained recovery. In addition to today’s earnings reports, investors will also be keeping an eye on CPI data from the US and minutes from the recent central bank meeting which could further shed light on the prospects in the immediate future and cause some reactions through markets, particularly if something unexpected is announced.
X-Trade Brokers Dom Maklerski S.A. does not take responsibility for investment decisions made under the influence of the information published on this website. None of the published information can be treated as a recommendation, disposition, promise, or guarantee that the investor will achieve a profit or will minimize risk using the information published on this website. Transactions including investment instruments, especially derivatives using leverage, are in its nature speculative and can provide both profits and losses that can exceed the initial deposit engaged by the investor.
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.