U.S. Economic Data Mixed This Week

Wells Fargo Research Team Wells Fargo

U.S. Review

U.S. Economic Data Mixed This Week

Retail sales provided the most positive piece of economic news in the United States this week. Sales topped expectations in July and, coupled with upward revisions to prior months, suggest a stronger pace of consumer spending than originally believed.
Housing starts in July were a disappointment, however, as both starts and permits fell on the month. Starts have fallen in five out of seven months this year.
Industrial production growth also came in below consensus in July, with much of the weakness concentrated in motor vehicles & parts.

Global Review

You Can Go Your Own Way

For the past several years, the world’s major central banks have broadly embraced very accommodative monetary policy. More recently, policy has started to go in different directions.
In this week’s Global Review, we break down the latest figures on inflation for the United Kingdom and Canada and the second quarter GDP number for Japan, and we consider what these numbers mean in the context of monetary policy for these different corners of the global economy.

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Wells Fargo Research Team

Wells Fargo

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.