Greenback Holding Firmly Ahead of CPI Release

Market Reviews

Japanese Yen has broadly declined. Asian stocks stabilized. China Shanghai Composite increased 2.15% to 2837. Nikkei rose 1.1%. Hong Kong HSI was up 0.9%. The greenback has slightly reduced, but remained the strongest among majors, waiting for today’s CPI data. Oil price declined and 70 handle is on the way. Loonie has significantly softened. Yellow metal is touching 1240. The key support of 1236.66 is aligned again.

Bank of Canada raised its rates by 25 basis points. Growth projections have been revised up. The main threat to the outlook is US trade policy. As of Fed, John Williams (New York Fed President) claimed the US entered a stage of an “overall strong economy”. And, “employers are now struggling to fill job openings.” He called it a “great time for businesses to set up” with internships, training programs and school partnerships.

The South Korean Ministry of Trade, Industry and Energy said that it expected US-China trade friction to be “prolonged and proliferated”. It also wants private sector to ask analysis from the KIEP (Korea Institute for Industrial Economics and Industry) on the impact upon imports and exports of each industry. The Ministry also told: “China’s home appliances, computers and telecommunication equipment are included in the additional tariffs, which suggests that exports of intermediate goods to China will decrease .”

British RICS house price balance grew to 2 in June. Australian consumer inflation expectation reduced to 3.9% in July. Today, the European Central Bank will issue minutes for its June protocol meeting. The US will present unemployment claims, headline Consumer Price Index and Core Consumer Price Index. Germany will announce CPI. Eurozone will feature industrial production. Canada will publish new housing price index.