Markit will publish this Friday at 08:00 GMT the preliminary estimates of its August indexes. EU August activity is expected to remain in expansion territory in August but speculative interest can’t ignore the sharp increase in coronavirus outbreaks in Europe. EUR/USD weighed by a resurgent dollar, but the slump remains corrective, FXStreet’s Chief Analyst Valeria
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GBP/USD back on the bid as the US dollar failed to hold in the 93 areas. Brexit concerns could come back into play if there are no positive progress reports from this week’s talks. GBP USD is currently trading 1.3190 and travelling between a low of 1.3064 and a high of 1.3201. In recent trade, the
Traders scaled back their open interest positions in Gold futures markets by almost 4K contracts on Wednesday, according to preliminary figures from CME Group. Volume, in the same time, increased for the third session in a row, this time by around 87.5K contracts. Gold could drop below $1,880/oz Prices of the ounce troy of Gold
“Markets see rates low for a very long time, there is no need to offer further guidance yet,” St. Louis Federal Reserve President James Bullard told Reuters in an interview on Wednesday. Additional takeaways “Wall Street has called virus risks about right as businesses, households adapt.” “Full-year hit to US Growth is perhaps 4%, follow-on fiscal package
FX Strategists at UOB Group noted EUR/USD is now targeting the 1.20 mark and beyond. Key Quotes 24-hour view: “While we expected EUR to strengthen yesterday, the ease by which it blew past the month-to-date peak at 1.1915 and the subsequent surge to an overnight high of 1.1965 came as a surprise. From here, further
Analysts at MUFG Bank, changed their short-term bias from bullish to bearish in EUR/USD. They see the pair moving in the 1.1500-1.2100 range. However, on the medium term, they expect the dollar to weaken further. Key Quotes: “We believe the risk-reward balance has shifted notably and we have therefore shifted our short-term bias from bullish
In its latest report, the Nomura analysts noted that India’s economic activity rose to a post-lockdown high in the week ended Aug. 16. Key quotes “After a prolonged period of flattening mobility trends since mid-June, Google workplace and retail & recreation mobility data have resumed their uptrend in August, even though they remain materially below
Analysts at Citibank forecast gold at $2,100/oz in 0-3 months and at $2,300 in a period of six to twelve months. They point out the record pace of ETF investor inflows (aweakening the dollar) and negative real yields are the primary drivers for gold’s rally. Key Quotes: “We lift gold short-term targets to ~$2,100/oz. 6-12m
FX Strategists at UOB Group see EUR/USD extending the side-lined theme between 1.1660 and 1.1880 in the next weeks. Key Quotes 24-hour view: “Last Friday, we held the view that the bias for EUR ‘is tilted to the downside towards 1.1765’. However, EUR dipped to 1.1781 before rebounding strongly. Despite the rapid bounce, upward momentum
Here is what you need to know on Monday, August 17: The dollar remained intrinsically weak, amid mixed US data and news indicating that the US Congress decided to take a month-long holiday without agreeing on a stimulus package. Major pairs, however, closed the week little changed and held within familiar levels. The USD/JPY pair
Gold erased more than 4% last week and closed below $1,950. Correction could extend to $1,850 area if bearish pressure remains intact. $2,000 psychological resistance will be a key level to watch. After closing the previous nine weeks in the positive territory, the troy ounce of precious metal finally staged a deep correction and lost
Previewing next week’s key macroeconomic events in the US, which includes the FOMC’s July meeting minutes, “at the July FOMC meeting the Committee did not initiate any new policy actions and changes to the statement were minor,” TD Securities analysts noted. Key quotes “While the Fed chairman did not provide any major details on the review
On Friday, key economic data was released in China. Economic activity indicators of July including industrial production, fixed asset investment and retail sales all pointed that growth recovery extended in the second half of the year, noted analysts at BBVA. However, they warn the demand side still lagged behind the supply side. Key Quotes: “Economic
The number of confirmed coronavirus cases rose to 221,413 with a total of 9,225 deaths, as reported by the German disease and epidemic control center, Robert Koch Institute (RKI), on Friday. Cases increased by 1,449 in Germany on Friday versus Thursday’s +1,445. The death count rose by 14, the tally showed. The total active cases
The US economy is doing well despite issues, COVID-19 hotspots and the backsliding on the reopening, White House economic adviser Larry Kudlow said on Thursday. Key takeaways “Restraint on the economy from flare-ups of COVID was low and we may be bouncing back.” “The threat is not over but numbers are turning a little bit in
In an interview with the Italian daily, La Repubblica, on Wednesday, the billionaire investing legend George Soros acknowledged that the current Wall Street rally looks like a bubble but noted that there are two key catalysts sustaining the advance. Key quotes “Two simple propositions”. “One is that in situations that have thinking participants the participants’ view of the world
The Bank of Mexico will have its Board meeting on Thursday. Market consensus point to a 50bp rate cut to 4.50%. Economist at BBVA Research also see such a rate cut and consider Banxico will keep cutting rates in each of the remaining meetings during 2020 to 3.00%. Key Quotes: “Following four consecutive 50bp rate
The UK Economic Data Overview The British economic calendar is set to dominate the markets moves at 06:00 GMT with the second quarter (Q2) GDP figures for 2020. Also increasing the importance of that time are March month Trade Balance and Industrial Production details. The first readout of the Q2 2020 GDP is seen weaker at