U.S. Dollar mostly unmoved post-CPI numbers
The U.S. Dollar is trading within familiar ranges, mostly unchanged following inflation numbers that came in line with expectations while the back-and-forth continues in Middle East tensions.
Price growth in America has slowed, according to the latest figures, with the Consumer Price Index for July rising just 0.1%. Later this morning, we will get the supply-side story with Producer Price Index figures. Tomorrow, the week closes with Retail Sales, which are expected to show little expansion, and the University of Michigan Consumer Sentiment survey. Stock futures seem positive after a session that brought trading to a near-record high.
Meanwhile, control over passages is being contested as Iran and the U.S. are reportedly close to a deal, yet still far from achieving one that satisfies both sides. The narrative has been frustrating and confusing, though markets are moving past it. Treasury bonds will be closely watched by traders, as the 30-year Treasury auction could be priced at the highest interest rate in 25 years. It could be a sign of things becoming more expensive down the line for central banks as well. Surprises may arise, but for now, the Buck is mostly steady while only slightly down, by two-tenths of a percent, thus far in August.
What to Watch This Week…
- Euro-zone GDP, Friday
- USA Online is always open
The complete Economic Calendar can be found here.
EUR
The Euro is looking positive today ahead of tomorrow’s Gross Domestic Product release, as well as the Employment Situation report. There has not been a catalyst to improve the Euro further thus far this month, but the shared currency has managed to hold on to the 1.4% advance it has experienced since the last week of July. Earlier, Industrial Production for the Eurozone came in flat as expected, a good sign for improvement after recent contractions. The annual average is now up 0.1% instead of down (-0.6%), indicating months of productivity losses, largely due to worries surrounding energy access stemming from the armed conflict. GDP at 0.4% or higher on Friday may finally support the Euro further.
GBP
Sterling has also been running stronger since the end of July and has not really given up those 1.5% gains. A new administration seems to be lifting optimism, while also being helped along by decent data figures suggesting the economy is not in such bad shape. GDP for Q2 came out at 0.4%, meeting estimates, and lifted the yearly average from 1.1% to 1.2%. Private Consumption, as well as Total Business Investment, impressed, outperforming negative forecasts. In what has been dubbed a “political stunt,” a special election for the Clacton seat will take place between Nigel Farage and Count Binface, a man dressed as a trash can. Mr. Farage is hoping to improve his image after some finance controversies and remains a figure of “Brexit” and its policies of keeping away from cooperation with the European Union, something that is being reviewed nationally after a decade since the referendum.