Dukascopy Bank Team
Dukascopy Bank SA
We start this report with two releases from the UK. First up at 8-30am is the UK Trade Balance for August. UK exports boomed in July and trade deficit fell to its lowest level since April 2011. Then, also at 8-30AM we have the UK Gross Domestic Product report for August. The UK economy on a whole bounced back in July expanding by 0.3%. We then head over the Atlantic for US Producer Price Index for September, which comes at 12-30AM GMT. An unexpected 0.1% drop last month was the first recorded drop in 1 and a half years. Then to Canada at the same time for Canadian Building Permits for August. Last months report showed a 0.1% drop, due mainly to lower construction intentions in British Columbia. We finish this report with Australian Inflationary Expectations Survey for October and that arrives at 12PM. Last time out expectations remained well below the eight year average of 5%.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
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AUD/USD could extend the recovery to 0.6500 and above
The enhanced risk appetite and the weakening of the Greenback enabled AUD/USD to build on the promising start to the week and trade closer to the key barrier at 0.6500 the figure ahead of key inflation figures in Australia.
EUR/USD now refocuses on the 200-day SMA
EUR/USD extended its positive momentum and rose above the 1.0700 yardstick, driven by the intense PMI-led retracement in the US Dollar as well as a prevailing risk-friendly environment in the FX universe.
Gold struggles around $2,325 despite broad US Dollar’s weakness
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Bitcoin price makes run for previous cycle highs as Morgan Stanley pushes BTC ETF exposure
Bitcoin (BTC) price strength continues to grow, three days after the fourth halving. Optimism continues to abound in the market as Bitcoiners envision a reclamation of previous cycle highs.
US versus the Eurozone: Inflation divergence causes monetary desynchronization
Historically there is a very close correlation between changes in US Treasury yields and German Bund yields. This is relevant at the current juncture, considering that the recent hawkish twist in the tone of the Federal Reserve might continue to push US long-term interest rates higher and put upward pressure on bond yields in the Eurozone.