What will move Forex, Commodities and Stock markets today? Let’s look into this 2 August Market moving fundamental events analysis by HotForex.
AtoZForex – We have entered the last month of summer, and numerous fundamental events are being eyed by the traders. These include the BoE meeting, the Eurozone producer prices, the UK Construction PMI and the Swiss manufacturing PMI. What else will be moving the markets today?
2 August Market moving fundamental events
Asian stock markets moved mostly higher overnight, after positive leads from Wall Street and Europe, which managed broad gains. The ASX, which outperformed yesterday, dropped against the trend. Oil, iron ore and base metals dropped and commodity stocks came under pressure. Earnings reports from Apple and Honda among others underpinned markets.
In Europe, the DAX finally managed to outperform amid a buoyant market as economic data in Europe and the U.S. dampened tightening concerns. FTSE 100 futures are rising further in tandem with U.S. futures. The Bund futures, which rose in tandem with the DAX yesterday, extended gains in after hour trade. European indices remain below recent highs, leaving room to catch up with the surge in the Dow Jones. Still, central bank
European indices remain below recent highs, leaving room to catch up with the surge in the Dow Jones. Still, central bank concerns, as well as geopolitical risks and Trump’s challenges all, mean investors reserve a degree of caution. Released overnight, the U.K. BRC shop price index dropped -0.4%. Still to come are Eurozone producer prices, the UK Construction PMI and the Swiss manufacturing PMI. The BoE starts its meeting ahead of tomorrow’s announcement.
The dollar majors have traded mixed so far today in relatively narrow ranges. One mover of note has been USDCAD, which has lifted to a 12-day high at 1.2586. The pair is in process of constructing its biggest rebound since early May. A drop in oil prices provided a cue to put the squeeze on Canadian dollar long positions. The WTI benchmark tumbled today below $49.0, continuing yesterday’s correction from the 10-week highs seen above $50.0
USDJPY rebounded to near 111.00 after briefly foraying below the 110.00 level yesterday, leaving a seven-week low at 109.93. A bullish tone in global equity markets has weighed on the yen. It has been propelled by encouraging earnings reports from bellwether companies.
EURUSD has remained in a fairly tight range below the 30-month high it saw on Monday at 1.1846. It has seen good demand on dips under 1.1800. AUDUSD edged out a two-session low at 0.7941, weighed on by a drop in commodity prices.
US Data Yesterday
It revealed a weak trajectory for personal income into mid-year following big downward revisions already revealed in last week’s GDP report. Thus, it left a remarkably steep decline in the savings rate to just 3.8% in June. We also saw a big 1.3% June construction spending plunge led by a 5.4% public construction decline after big downward revisions. The mix lowered our GDP estimates to 2.4% from 2.6% in Q2, and to 3.3% from 3.5% in Q3. Consumption mostly tracked estimates, with modest overshoots to the chain price data, and incoming auto data suggest a 2% y/y vehicle sales rise to a 16.7
The mix lowered our GDP estimates to 2.4% from 2.6% in Q2, and to 3.3% from 3.5% in Q3. Consumption mostly tracked estimates, with modest overshoots to the chain price data. Also, the incoming auto data suggest a 2% y/y vehicle sales rise to a 16.7 mln pace. We saw a surprisingly firm 56.3 ISM figure for July, though this marked a decline from a 3-year high of 57.8 in June. The income, retail sales, payroll, and inventory data remain remarkably weak in 2017. Though the factory, industrial production, confidence and sentiment data remain strong.
Main 2 August Market moving fundamental events
- ADP Numbers – The ADP private payroll number for July today is expected to show an increase of 187,000 from 158,000 last month.
- Crude Oil Inventories – The weekly EIA official inventories are expected to show a drawdown of 3.2 million barrels from last week’s significant 7.2 million barrels. However, yesterday the US fuel inventories actually rose unexpectedly, and USOil prices fell over 1% from the psychological $50.00 level.
The article about 2 August Market moving fundamental events was written by Stuart Cowell, the Senior Market Analyst at HotForex.
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