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Japan: GDP steady, inflation near BoJ target – ING
ING highlights that market consensus sees Japan’s preliminary Q2 Gross Domestic Product (GDP) holding at 0.5% quarter-on-quarter, with Private Consumption remaining the main growth driver.
Oil: Diverging energy risks shape outlook – Commerzbank
Commerzbank’s Norman Liebke highlights that Oil and European natural gas are reacting differently to Middle East supply risks, with Brent supported by rerouted flows while gas remains constrained by lost LNG from Qatar and US cargoes diverted to Asia.
US Dollar: Medium-term depreciation risks build – Nordea
Nordea strategists argue that while near-term risks for the Dollar are broadly balanced, the longer-term outlook remains negative.
United States Michigan Consumer Expectations Index down to 50.6 in August from previous 55.4
United States Michigan Consumer Expectations Index down to 50.6 in August from previous 55.4
United States UoM 5-year Consumer Inflation Expectation unchanged at 3.3% in August
United States UoM 5-year Consumer Inflation Expectation unchanged at 3.3% in August
United States UoM 1-year Consumer Inflation Expectations increased to 4.3% in August from previous 4.2%
United States UoM 1-year Consumer Inflation Expectations increased to 4.3% in August from previous 4.2%
United States Michigan Consumer Sentiment Index registered at 51, below expectations (54.5) in August
United States Michigan Consumer Sentiment Index registered at 51, below expectations (54.5) in August
United States Business Inventories came in at 0% below forecasts (0.1%) in June
United States Business Inventories came in at 0% below forecasts (0.1%) in June
Canada: Solid growth with limited tariff drag – RBC
Royal Bank of Canada (RBC) economist Claire Fan highlights that Canadian growth rebounded strongly in Q2, supported by resilient domestic demand and improving net trade. She notes that U.S.
Japanese Yen gains on hawkish BoJ outlook and softer US Dollar
USD/JPY trades on the back foot on Friday, pressured by a weaker US Dollar (USD), while the Japanese Yen (JPY) draws support from a more hawkish Bank of Japan (BoJ) outlook. At the time of writing, the pair trades around 158.85, down 0.40% on the day.
Gold: Fed pause keeps systematic demand supported - TD Securities
TD Securities’ Ryan McKay and Bart Melek note that CTA (Commodity Trading Advisors) net long positioning in Gold is becoming more entrenched as discretionary demand improves.
Japanese Yen: BoJ policy story having little effect – ING
ING’s Chris Turner notes that despite sharp moves in Japanese money markets, the Japanese Yen is not finding lasting support. Markets now price a high probability of a Bank of Japan hike in September, narrowing US–Japan swap differentials, yet USD/JPY remains elevated as carry trades persist.
British Pound: BoE hawks get support from UK data – Rabobank
Rabobank strategist Elwin de Groot observes that stronger-than-expected UK GDP has provided fresh ammunition to Bank of England (BoE) hawks, even as the Bank remains reluctant to tighten further. Growth was broad-based, with investment and GDP per capita both rising.