Market Movers ahead
- The minutes from the 29-30 July FOMC meeting due on Wednesday will attract attention, as the FOMC's communication took a more hawkish turn in the latest statement.
- In the US we expect manufacturing PMI to stay unchanged at 55.8 in August and look for an increase in consumer prices. We expect the core CPI to increase 0.2% m/m and 2.0% y/y and the headline CPI to come out at 0.2% m/m and 2.1% y/y.
- In the euro area we expect manufacturing PMI to increase marginally to 52.0, reflecting a slight increase in the output and new export orders index in July.
- We expect the Chinese Markit/HSBC manufacturing PMI to improve to 51.9 in August from a final reading of 51.7 in July.
- In Japan manufacturing PMI should give us some important information about the strength of the economy in the wake of hike in the consumption tax in April.
- In Scandinavia, the main event next week will be the release of Norwegian Q2 GDP. We estimate that mainland GDP rose by 0.8% q/q in Q2, supported by higher global growth and a weaker NOK.
Global macro and market themes
- Euro recovery weakening due to temporary external headwinds.
- Short-term picture still weak but euro recovery to gain pace later this year.
- US and Chinese recovery to moderate.
- Risk appetite recovers for now while bond yields hit new lows.
General Risk Warning for stocks, cryptocurrencies, ETP, FX & CFD Trading. Investment assets are leveraged products. Trading related to foreign exchange, commodities, financial indices, stocks, ETP, cryptocurrencies, and other underlying variables carry a high level of risk and can result in the loss of all of your investment. As such, variable investments may not be appropriate for all investors. You should not invest money that you cannot afford to lose. Before deciding to trade, you should become aware of all the risks associated with trading, and seek advice from an independent and suitably licensed financial advisor. Under no circumstances shall Witbrew LLC and associates have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to investment trading or (b) any direct, indirect, special, consequential or incidental damages whatsoever.
Recommended Content
Editors’ Picks
EUR/USD stays near 1.0750 following Monday's indecisive action
EUR/USD continues to fluctuate in a tight channel at around 1.0750 after posting small gains on Monday. Disappointing Factory Orders data from Germany limits the Euro's gains as investors keep a close eye on comments from central bankers.
AUD/USD drops below 0.6600 after RBA policy announcements
AUD/USD stays under bearish pressure and trades deep in negative territory slightly below 0.6600. The RBA left the policy settings unchanged as expected but Governor Bullock said that there was no necessity to further tighten the policy.
Gold price turns red amid the renewed US dollar demand
Gold price trades in negative territory on Tuesday amid the renewed USD demand. A downbeat US jobs data for April prompted speculation of potential rate cuts by the Fed in the coming months.
Bitcoin miner Marathon Digital stock gains ground after listing by S&P Global
Following Bitcoin miner Marathon Digital's inclusion as an upcoming member of the S&P SmallCap 600, the company's stock received an 18% boost, accompanied by an $800 million rise in market cap.
The impact of economic indicators and global dynamics on the US Dollar
Recent labor market data suggest a cooling economy. The disappointing job creation and rising unemployment hint at a slackening demand for labor, which, coupled with subdued wage growth, could signal a slower economic trajectory.