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Market Recap
A relatively quiet night saw all three U.S. equity indices close almost unchanged on the day. U.S. 10-year yields were also flat, while crude oil fell 1.3% to $77.40 a barrel. The AUD/USD remained heavy and closed at the lower end of its 0.6612/46 range.
Minimal activity into the London lunch with USD/JPY attempting to recover from 155.825 lows to trade back above 156.00. The antipodes drifted lower to hit lows of 0.6621 and 0.5960, while EUR/USD and GBP/USD fell further to 1.0857 and 1.2889.
Into the NY morning, there was little in the way of meaningful US data in early trade. Later in the session, the Richmond Fed Manufacturing Index for July fell to -17 from -10, worse than forecasts of -6, while June Existing Home Sales fell by 5.4% to 3.89 million, worse than the predicted 30% decline to 3.99 million.
Day Ahead
Another quiet day in Asia with nothing of note on the calendar. In Canada, the BoC’s rate decision will be announced this evening. Markets expect a 25 bps rate cut, an outcome the market is placing an ~85% probability on. Guidance on further cuts is likely to be cautious given consecutive months of underlying inflation. This meeting will include an updated forecast as part of the Monetary Policy report release.
AUD/USD remained heavy on its way to an overnight low of 0.6612. Demand now rests at 0.6580/90, while offering interest remains above 0.6700.
Economic Data to Watch
- Japan: July Preliminary Jibun Bank Japan Manufacturing PMI
- Eurozone: ECB’s Guindos Speaks, July Preliminary HCOB Eurozone Manufacturing PMI
- United Kingdom: July Preliminary S&P Global UK Manufacturing and Services PMI
- United States: MBA Mortgage Applications, June Preliminary Wholesale Inventories (m/m), S&P Global US Manufacturing PMI, June New Home Sales, Fed’s Bowman and Logan Speak
- Canada: Bank of Canada Rate Decision
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.
