GBP/USD consolidates above 1.3450 with muted reaction to US inflation data The British Pound (GBP) trades under pressure against the US Dollar (USD) on Friday, snapping a three-day winning streak as the Greenback holds firm. GBP/USD is finding a footing above 1.3450 during the American session, stabilizing after the release of the US Personal Consumption Expenditures (PCE) Price Index…
European Central Bank Governing Council member Olli Rehn, governor of the Finnish central bank spoke in an interview with Finnish newspaper Helsingin Sanomat on Sunday. Rehn says the European Central Bank should take a flexible approach on interest rate decisions in the meetings ahed. Rehns said there are more downside risks to EU-zone inflation stemming from a stronger euro…
The Swiss Franc strengthens for a fourth straight day, sending USD/CHF toward fresh one-month lows. The US Dollar Index (DXY) slips below 98.00 as markets price in an 89% chance of a Fed rate cut in September. US July PCE report showed sticky inflation pressures alongside strong household spending. The Swiss Franc (CHF) extends its rally for the fourth…
Headlines: Markets: USD leads, GBP lags on the day European equities lower; S&P 500 futures down 0.3% US 10-year yields up 1.8 bps to 4.225% Gold down 0.3% to $3,405.82 WTI crude down 0.4% to $64.35 Bitcoin down 1.6% to $110,106 There wasn’t too much action on the session as markets are looking to wrap up the month of…
United States Baker Hughes US Oil Rig Count came in at 412, above expectations (408)
Australia’s July CPI report delivered a substantial upside surprise, printing at 2.8% annually versus 2.0% expected. This hot inflation reading temporarily reduced RBA easing expectations and provided support for the Australian dollar during a week dominated by Fed independence concerns and mixed risk sentiment. Let’s examine which pairs from our watchlist capitalized on this environment of reduced RBA dovishness…
Prior +2.0% HICP +2.1% vs +2.0% y/y expected Prior +1.8% The state readings, which were firmer than estimated, from earlier can be found here. Core annual inflation remains unchanged for a third straight month at 2.7%. That is still on the higher side as it holds above the ECB’s 2% target, so more work needs to be done in…
China NBS Non-Manufacturing PMI meets expectations (50.3) in August
We have a pretty tranquil session ahead in terms of data releases. The main highlights are the US PCE report for July and the Canadian GDP. The Core PCE is expected at 2.9% Y/Y and 0.3% M/M. Unless we get notable deviations, I don’t expect the market to react to it too much given that the PCE can be…
China NBS Manufacturing PMI below forecasts (49.5) in August: Actual (49.4)
