Market News
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Euro gains against Japanese Yen as ECB, BoJ rate hike bets intensify
EUR/JPY rises 0.15% on Friday and trades around 184.15 at the time of writing. The pair remains supported despite growing expectations that Japan could raise interest rates as soon as September, while investors also anticipate further monetary tightening in the Eurozone.
Canadian Dollar: Bullish momentum points to gains against US Dollar – Scotiabank
Scotiabank strategists Shaun Osborne and Eric Theoret highlight Canadian Dollar (CAD) strength as USD/CAD trades just below their fair value estimate around 1.3895, supported by tighter US–Canada 2-year spreads and firmer commodity FX.
China: Activity slowdown and LPR hold – ING
ING’s Lynn Song expects China’s July data to show continued sluggish momentum, with only a modest rebound and weak Retail Sales at 1.7% year-on-year. Fixed Asset Investment is forecast to contract further, while Industrial Production remains relatively firm.
Colombia Retail Sales (YoY) came in at 14.7%, above expectations (13.6%) in June
Colombia Retail Sales (YoY) came in at 14.7%, above expectations (13.6%) in June
Colombia Industrial output (YoY) above forecasts (2.1%) in June: Actual (4.1%)
Colombia Industrial output (YoY) above forecasts (2.1%) in June: Actual (4.1%)
Euro climbs as fading Fed hike expectations pressure US Dollar
EUR/USD rallies on Friday, erasing all the losses recorded earlier this week as broad-based weakness in the US Dollar (USD) lifts the Euro (EUR). At the time of writing, the pair trades around 1.1580 near its highest level since June 17.
Gold: Upside seen as Fed hike bets fade – Commerzbank
Commerzbank’s Carsten Fritsch notes Gold has rallied to its highest level since early June as markets scale back expectations for further Fed rate hikes.
Federal Reserve: Labour strength supports further hikes – Nordea
Nordea analysts Ole HÃ¥kon Eek-Nielsen and Jan von Gerich argue that the Federal Reserve is likely to deliver three more rate hikes over coming quarters to bring inflation back to target.
United Kingdom: Inflation risks tilt higher – TD Securities
TD Securities’ Julie Ioffe expects UK headline CPI to rise to 2.9% year-on-year in July, largely due to the Ofgem energy price cap adjustment. Services inflation is forecast to ease to 3.4%, while core goods rise to 1.0%, keeping core CPI at 2.6%.
Canadian Dollar surges as sharp US Retail Sales miss hits the Dollar
The Canadian Dollar (CAD) is among the best performers on Friday, trading near a fresh two-month low against the US Dollar (USD) near the 1.3860s mark. The move coincides with a weak US Retail Sales report that pulled the Greenback lower across the board, but it preceded that data release.
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.