The U.S. dollar extended its gain for five consecutive days. it sparked to a two-week high dollar as investors shrugged off Fitch’s U.S. credit rating downgrade while data showing a larger-than-expected increase in private payrolls in July bolstered the greenback as it points to labour market resilience.
The dollar index rose by 0.62% against a basket of currencies to 102.596.
Gold prices retreated from the day’s high of 59811 and settled at 59471.00. Silver extended its fall for a second consecutive day and settled at 72960, down 1.33%. Copper retreated by 0.99% and settled at 737.10. Crude plunged by 2.55% at 6556.00
Economic data released yesterday
Australia’s trade surplus was A$11.321 billion (A$1= $0.6543) in June, stronger than expectations for a reading of A$11.25 billion, but slightly weaker than the A$11.791 billion seen in May.
According to the ADP National Employment report, private payrolls in the United States increased by 324,000 last month, surpassing the 189,000 gain predicted by Reuters’ survey of experts.
Real retail sales in Australia decreased 0.5% in the second quarter to A$35.2 billion ($23.02 billion), which was in line with analyst expectations. The worst run since the period leading up to the global financial crisis in 2008, was the third consecutive quarter of falls.
Economic data and events to watch today
Japan
At 5.20 am Monetary Policy Meeting Minutes
Snaky headlines from the meeting minutes will drag huge volatility in Yen.
Eurozone
At 11.30 pm – German Trade Balance. Data is foreseen at 15.0B from 14.4 B.
At 12.15 pm – German Trade Bal French Gov Budget Balance.
At 12.45 pm – Spanish Services PMI. Data is foreseen at 53.5 from the previous 53.4.
At 1.15 pm – Italian Services PMI. Data is foreseen at 52.2 from the previous 52.2.
At 1.20 pm – French Final Services PMI. Data is foreseen at 47.4 from the previous 47.4.
At 1.25 pm – German Final Services PMI. Data is foreseen at 52.00 from the previous 52.20.
At 1.30 pm – Final Services PMI. Data is foreseen at 51.5 from the previous 51.5.
At 1.30 pm Italian Retail Sales m/m. Data is foreseen at 0.2% from the previous 0.7%.
At 2.3pm – PPI m/m. Data is foreseen at 51.5 from 51.5.
All the above data could have a volatile impact on the Euro.
U.K.
At 4.30 pm –
BOE Monetary Policy Report.
MPC Official Bank Rate Votes. Data is foreseen at 7-0-2 from the previous 7-0-2.
Monetary Policy Summary
Official Bank Rate. Will expect to hike by 5.25% from 5.00%.
At 5.00 pm – BOE Gov Bailey Speaks.
Above meeting could have a volatile impact on the market as well as on the Pound.
U.S
At 6.00 pm
Unemployment Claims. Data is foreseen at 226k previous was at 221k.
Prelim Nonfarm Productivity q/q. Data is foreseen at 2.1% previous was at-2.1%.
Prelim Unit Labor Costs q/q. Data is foreseen at 2.5% previous was at 4.2%.
At 7.15 pm – Final Services PMI. Data is foreseen at 52.4 from 52.4.0
At 7.30 pm – ISM Services PMI. Data is foreseen at 53.1 from the previous 53.9.
Factory Orders m/m. Data is foreseen at 2.0% from the previous 0.3%.
At 8.00 pm – Natural Gas Storage. Data is foreseen at 18 B from the previous 16 B.Above data could have a volatile impact on the dollar.