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)
Prior 2.8% Core PCE M/M 0.3% vs 0.3% expected Prior 0.3% Headline PCE: PCE Y/Y 2.6% vs 2.6% expected Prior 2.6% PCE M/M 0.2% vs 0.2% expected Prior 0.3% Income/Spending: Personal income M/M 0.4% vs 0.4% expected Prior 0.3% Personal spending M/M 0.5% vs 0.5% expected 0.3% prior (revised to 0.4%) Minimal reaction in the markets, which shouldn’t be…
Silver advances to its strongest level since September 2011. Markets are pricing about an 87% chance of a Fed rate cut in September, despite firmer core PCE inflation. Technical outlook points to a potential break above $40.00, with resistance at $41.48 and $43.40, while support holds at $39.00 and the 100-period EMA. Silver (XAG/USD) extends its rally for the…
