Key events coming up: eyes on FOMC minutes - TDS

Ross J Burland FXStreet

Analysts at TD Securities, (TDS), noted the forthcoming risk events to take note of.

Key Quotes:

"GBP BoE Governor Carney speaks at an event in Newcastle at 10:45am BST. We think it's unlikely that he veers away from the MPC's recent message, with the data pointing to the BoE being on track to hike rates in August."

"EUR Markets are looking for German factory orders to rise by 1.1% m/m in May, on the back of 4 straight monthly declines. Factory orders are down nearly 7% on a YTD basis as of April, making for weakest 4-month streak since the financial crisis, and not boding well for manufacturing activity into the middle of the year. The ECB's Praet delivers a keynote speech in Belgium at 9:30am BST."

"USD FOMC Minutes for the June meeting will be released at 14:00 ETand TD looks for an optimistic tone on-balance, in line with the upbeat economic outlook from the policy statement. ADP employment is out at 8:15 ET ahead of Friday's payroll report and the market looks for a slight pickup in job growth to 190k, while initial jobless claims are expected to edge lower to 225k for the week of June 30. ISM Non-Manufacturing PMI will round out the data calendar and the market consensus is for the index to edge lower to 58.3."

"MXN We expect a hawkish tone from the June monetary policy minutes, with less confidence in inflation convergence driven by peso instability on the back of political uncertainty (election, NAFTA). While we do not expect further hikes, so long as MXN is generally stable to appreciating, we expect policymakers to retain a hawkish, vigilant tone."

Author

Ross J Burland

FXStreet

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.

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold tumbles as blockbuster US NFP lift US Dollar, Treasury yields

Gold (XAU/USD) falls sharply on Friday, snapping a two-day recovery after the US Nonfarm Payrolls (NFP) report surprised strongly to the upside. The metal briefly climbed above $4,500 on Thursday, gaining nearly 2%, but has since erased a large part of that advance.

Crypto’s $638 million buyback boom may not be as bullish as it looks

Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.

Why hawkish Bank of Japan expectations aren't enough to sustain the Japanese Yen rally

The Japanese Yen (JPY) experienced a sudden burst higher after falling back below the 160.00 psychological mark against the US Dollar (USD) earlier this week amid a more hawkish repricing of Bank of Japan (BoJ) rate hike expectations.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.