Pound Boosted After BoE, US NFP To Watch

Market Reviews

Sterling strengthened its position after yesterday’s weakening. Kiwi dropped to trade as the softest. Loonie is trading as the strongest. Greenback is firm as well. Meanwhile, DOW fell -0.03% at 25326.61. NASDAQ rose 1.24% at 7802.69. Nikkei increased 0.06%. China Shanghai SSE surged 0.08%. Hong Kong HSI reduced -0.13%.

Today’s most notable event is Non-farm payrolls from the US. The data is projected to mark 193 thousand growth in jobs in July. Jobless rate should fall to 3.9%. Average hourly earnings are expected to rise 0.3% mom. ADP report indicated 219 thousand growth in private sector jobs. ISM manufacturing employment increased 0.5 at 56.5. The 4-week average of initial unemployment claims lowered to 221.50 thousand from 217.25 thousand. Consumer confidence was up 0.3 to 127.4 in July.

There has been some development in the NAFTA negotiation as Ildefonso Guajardo (Mexico’s Economy Minister) and Robert Lighthizer (US Trade Representative) discussed the matter. Mexico’s Economy Minister noted that there was a “very good advancement” in at least 20 points. They are yet to talk down more serious issues.

Bank of Japan published a protocol of its June meeting. Someone expressed doubts about the Bank’s policy, claiming that 2% target was impossible to reach with it. Members also concluded the “sluggish growth in the CPI since the start of fiscal 2018”. Among the risks to the outlook, BoJ outlined US protectionism, Brexit and geopolitical risks.

Australian AiG performance of services fell -9.4 pts to 53.6 in July. Retail sales were up 0.4% mom in June. China Caixin PMI services declined 1.1 to 52.8 in July. Today, Britain will release PMI services, Eurozone will present PMI services final and retail sales, Swiss will feature Consumer Price Index, Canada will announce trade balance and US will publish NFP, trade balance and ISM services.