Stay informed with CA Markets’ daily market update, providing the latest trends and insights in Forex and CFD trading. Our comprehensive analysis and expert advice are designed to keep you informed and ahead in CFD trading. Whether you’re navigating currency pairs or exploring diverse asset classes, our updates offer valuable perspectives to optimize your trading strategies. Trust CA Markets to deliver timely market analysis that empowers your decisions and enhances your trading experience.
Market Recap
Wall Street fell sharply overnight following disappointing corporate earnings and a broader weakening of risk sentiment. The Nasdaq closed down by 3.7%, the S&P 500 by 2.3%, and the Dow Jones by 1.3%. U.S. 10-year yields rose 3 bps to 4.29%, while crude oil increased by 0.8% to $77.50 a barrel. In currency markets, USD/JPY fell to a low of 153.105, while AUD/USD traded in a 0.6578/0.66175 range before settling at 0.6580 ahead of the Asian open.
Heading into the London lunch session, GBP/USD and EUR/USD recovered to 1.2907 and 1.0842, respectively. The S&P Global UK Manufacturing PMI came in stronger than expected at 51.8 (versus 51.0 expected). USD/JPY was soft at 154.57 after hitting morning lows of 154.28. Meanwhile, the antipodes also recovered from daily lows near 0.6580 and 0.5915.
It was a quiet start into the NY morning with minimal data, except for MBA Mortgage Applications, which came in at -2.2% (3.9% prior). Later in the session, June Wholesale Inventories m/m came in below expectations at 0.2% (versus 0.5% expected).
US Manufacturing PMI underwhelmed at 49.5 compared to expectations of 51.6, while Services PMI was 56.0 compared to expectations of 54.9. This left the Composite PMI at 55.0, better than expectations of 54.2. There was little reaction to the data, though EUR/USD and GBP/USD rose to new highs of 1.08665 and 1.29385, respectively. USD/JPY continued to fall on speculation of BOJ rate hikes in the near term, falling to lows of 153.105, down nearly 00 points on the day.
The Bank of Canada cut rates by 25 bps to 4.50% as generally expected and suggested further rate cuts were likely if inflation fell as forecast. They also noted downside risks to the economic outlook and that the labor market had cooled recently. USD/CAD rose from near 1.3780 to highs of 1.38075 in response.
Day Ahead
In the U.S., the Q2 2024 real GDP growth will be released this evening. This release could shape perceptions of the strength of US activity and expectations for monetary policy. The FRB Atlanta tracking estimate has rebounded to 2.5% after troughing at 1.5% earlier in the month.
U.S. real personal spending for June will also be published. A robust core retail sales reading for the month points towards a solid gain for the month. The figure will provide a sense of the strength of the consumer at the end of Q2 and will impact expectations for Q3 growth.
AUD/USD continued to trade poorly on its way to an overnight low of 0.6578. Demand now rests at 0.6460/80, while offering interest remains above 0.6700.
Economic Data to Watch
- Japan: Foreign Buying Japan Stocks, Japan Buying Foreign Stocks, June Nationwide Department Sales (y/y)
- Eurozone: June M3 Money Supply (y/y)
- Germany: July IFO Business Climate
- United States: Continuing Claims, Q2 A. Core PCE Price Index (q/q), June P. Durable Goods Orders, June P. Durable Ex Transportation, Q2 A. GDP Annualised (q/q), Q2 A. GDP Price Index, June Real Personal Spending, Initial Jobless Claims, Q2 A. Personal Consumption
Disclaimer
The information provided in this daily market update is for informational purposes only and should not be considered as financial advice. Trading Forex and CFDs involves significant risk of loss and may not be suitable for all investors. Past performance is not indicative of future results. CA Markets does not guarantee the accuracy or completeness of the information provided, and we recommend consulting with a qualified financial advisor before making any trading decisions. Users are solely responsible for their own trading activities and decisions.
