|

Details for the day ahead - TDS

Analysts at TD Securities offered their outlook for the day ahead broken down by currency.

Key Quotes:

"AUD The trade balance for Jul is expected to be a surplus of +$A1.7b (mkt +$A1.45b) after guidance from the recent Chinese trade report suggesting bumper imports (+0.9%/m) slightly outpacing still solid exports (+0.5%/m).

SEK We’re in line with the unanimous consensus looking for the Riksbank to keep the policy rate on hold at -0.50% at 08:30 BST, and we anticipate a 4-2 vote in favour of a hold. The main focus for markets will be the Riksbank’s policy rate forecasts, especially as the timing of the first rate hike draws closer and closer (see our preview here). While it’s a close call given the persistent downside surprises to the Riksbank's CPIF ex-energy forecasts, we believe that the inflation data overall has been just strong enough to allow the Riksbank to maintain its rate hike forecast for Q4 this year. However, views on this are mixed among the analyst community, and the odds of the Riksbank pushing back the first rate hike into Q1 are around 1 in 3 in our view.

EUR German factory orders for July are released, and the market is looking for a 1.8% m/m rebound after a disappointing 4% decline in June.

USD The market looks for ADP employment to rise by 193k in August ahead of the official jobs data on Friday. Afterwards, ISM Non-manufacturing will give an update on momentum in the services sector at 10:00 ET with markets looking for a pick up to 56.8. Revisions to Q2 nonfarm productivity and unit labor costs (market: 2.9%, 0.9%, both unchanged from preliminary release) and initial jobless claims for September 1st (market: 213k) round out the data calendar.

CAD Building permits for July are the lone data release, with the market looking for a 0.5% m/m increase.

BRL August inflation is expected to decrease on annual basis to 4.29% down from the prior 4.48%. The temporary surge in inflation due to the truckers strike appears to have faded away. Slow economic recovery continues to weigh on unemployment, which is still in double digits, suggesting that the central bank should be in no rush to raise interest rates despite the currency pressure. We do not expect BCB to hike until Q1 2019.

HUF August IP growth is expected at 8.0% Y/Y, up from the prior 3.1%. August manufacturing PMI came out at 56.2 from a prior 53.3 indicating that production growth is likely to increase.

ZAR The CA deficit for Q2 is expected at -3.3% GDP, slightly less than the -4.8% recorded in Q1. Slightly lower deficit is expected because in Q2 South Africa ran a trade surplus of 16.9bn rand, after running a deficit of -16.7bn rand in Q1."

Author

Ross J Burland

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

More from Ross J Burland
Share:

Editor's Picks

AUD/USD holds above 0.7000 as Fed and RBA, inflation tests loom

The Australian Dollar consolidates for the fourth straight day versus the US Dollar, yet registers modest gains of 0.11%, as price action shifts to choppy ahead of the Federal Reserve’s monetary policy decision. A busy US economic docket barely moved the markets, while traders eye the release of Australia’s Consumer Price Index.

USD/JPY sticks to modest gains above 157.50 as traders await Fed, BoJ meetings

USD/JPY attracts buyers for the third straight day, recovering further from a one-month low ahead of Wednesday’s FOMC decision and the BoJ policy update on Friday. Meanwhile, expectations that the BoJ may hold off on aggressive rate hikes weigh on the Japanese Yen, and the US Dollar advances to a nearly two-week high, supporting the currency pair.

Gold rises above $4,050 ahead of Fed rate decision

Gold price jumps to around $4,065 during the early Asian session on Wednesday, bolstered by lower oil prices. Traders await the Federal Reserve's policy meeting later on Wednesday for signals on ‌the future path of US interest rates.



Ethereum ETFs near record monthly outflows as ETH tests $2,310
Ethereum (ETH) held steady on Tuesday, consolidating at $2,340, just above $2,300 after last week’s decline. Three measures sit within about $18 of each other: ETH’s realized price at $2,310, the 200-day Exponential Moving Average (EMA) at $2,315, and the $2,328 average cost basis of wallets holding 1K-10K ETH.
What can we expect from the RBNZ monetary policy decision?

On Wednesday, October 28 at 01:00 GMT, the Reserve Bank of New Zealand, led by Governor Anna Breman, is expected to raise the Overnight Cash Rate by 25 basis points, from 2.75% to 3%, as money markets price in a 100% chance. This would be the third-rate hike by the RBNZ, while the odds for another hike in December are nearly 50%.

Anthropic pledged $270 billion to Amazon, Google, and Microsoft. Here's who actually gets paid
Anthropic owes Amazon, Google, and Microsoft at least $269.4 billion for computing power, even if it uses less. All three sell its models and handle its billing, and Amazon and Google own stakes and lend it money, so they get paid regardless of how the IPO goes. The Dario Amodei-led Anthropic filed its initial public offering (IPO) on Monday, seeking a listing on the Nasdaq under the ticker ANT.