Articles

Canada: Raw Material Price Index up 3% in August vs. 6.9% expected

67800   August 31, 2020 20:40   FXStreet   Market News  

• Raw Materials Price Index in Canada rose less than expected in July.
• USD/CAD continues to trade in the negative territory near 1.3060.

“Prices for raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Price Index (RMPI), increased 3.0%, mainly as a result of higher prices for crude energy products,” Statistics Canada reported on Monday. This reading followed’s June’s increase of 7.5% and came in below the market expectation of 6.9%.

Further details of the report revealed that the Industrial Product Price Index (IPPI) rose 0.7% in July, compared to analysts’ estimate of 0.5%.

Market reaction

The USD/CAD pair largely ignored these data and was last seen losing 0.25% on a daily basis at 1.3065. 

Brazil Nominal Budget Balance came in at -86.909B, above forecasts (-109.9B) in July

67799   August 31, 2020 20:35   FXStreet   Market News  

After spending the second half of the previous week under modest bearish pressure, crude oil prices started the new week on a strong footing. As of writing, the barrel of West Texas Intermediate (WTI) was trading near $43.50, gaining 1.25% on a daily basis.

Brazil Primary Budget Surplus above forecasts (-94B) in July: Actual (-81.071B)

67798   August 31, 2020 20:35   FXStreet   Market News  

After spending the second half of the previous week under modest bearish pressure, crude oil prices started the new week on a strong footing. As of writing, the barrel of West Texas Intermediate (WTI) was trading near $43.50, gaining 1.25% on a daily basis.

Canada July building permits -3.0% vs +5.5% expected

67797   August 31, 2020 20:33   Forexlive Latest News   Market News  

HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.

ADVISORY WARNING: FOREXLIVE™ provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect’s individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and FOREXLIVE™ specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. FOREXLIVE™ expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results.

Canada July industrial product price +0.7% vs +0.4% prior

67796   August 31, 2020 20:33   Forexlive Latest News   Market News  

HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.

ADVISORY WARNING: FOREXLIVE™ provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect’s individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and FOREXLIVE™ specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. FOREXLIVE™ expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results.

USD/JPY refreshes session tops, eyeing a move beyond 106.00 mark

67795   August 31, 2020 20:33   FXStreet   Market News  

• USD/JPY witnessed some short-covering move on Monday amid receding safe-haven demand.
• Stronger Chinese PMI prints provided an additional boost to the already upbeat market mood.
• The prevalent bearish sentiment around the USD might cap gains, at least for the time being.

The USD/JPY pair added to its intraday gains and refreshed daily tops in the last hour, with bulls now eyeing a move back above the 106.00 round-figure mark.

The pair managed to find some support ahead of the key 105.00 psychological mark and witnessed an intraday short-covering move on the first day of a new trading week. The positive move assisted the USD/JPY pair to recover a part of the previous session’s sharp fall from the 107.00 neighbourhood.

The momentum was exclusively sponsored by the upbeat market mood, which tends to undermine demand for the safe-haven Japanese yen. The global risk sentiment got a strong boost on Monday following the release of the better-than-expected Chinese Manufacturing and Services PMI prints for August.

Bullish traders further took cues from a modest pickup in the US Treasury bond yields. However, the prevalent bearish sentiment surrounding the US dollar might hold investors from placing fresh bullish bets and keep a lid on any runaway rally for the USD/JPY pair, at least for the time being.

In the absence of any major market-moving economic releases from the US. This makes it prudent to wait for some strong follow-through buying before positioning for any further intrada appreciating move. Hence, any subsequent strength runs the risk of fizzling out rather quickly.

Technical levels to watch

Canada Raw Material Price Index came in at 3% below forecasts (6.9%) in July

67794   August 31, 2020 20:33   FXStreet   Market News  

After spending the second half of the previous week under modest bearish pressure, crude oil prices started the new week on a strong footing. As of writing, the barrel of West Texas Intermediate (WTI) was trading near $43.50, gaining 1.25% on a daily basis.

Canada Industrial Product Price (MoM) in line with forecasts (0.7%) in July

67793   August 31, 2020 20:33   FXStreet   Market News  

After spending the second half of the previous week under modest bearish pressure, crude oil prices started the new week on a strong footing. As of writing, the barrel of West Texas Intermediate (WTI) was trading near $43.50, gaining 1.25% on a daily basis.

Canada Building Permits (MoM) below expectations (5.5%) in July: Actual (-3%)

67792   August 31, 2020 20:33   FXStreet   Market News  

After spending the second half of the previous week under modest bearish pressure, crude oil prices started the new week on a strong footing. As of writing, the barrel of West Texas Intermediate (WTI) was trading near $43.50, gaining 1.25% on a daily basis.

India Gross Domestic Product Quarterly (YoY) came in at -23.9%, below expectations (-18.3%) in 2Q

67791   August 31, 2020 20:26   FXStreet   Market News  

After spending the second half of the previous week under modest bearish pressure, crude oil prices started the new week on a strong footing. As of writing, the barrel of West Texas Intermediate (WTI) was trading near $43.50, gaining 1.25% on a daily basis.

Belgium Gross Domestic Product (QoQ) climbed from previous -12.2% to -12.1% in 2Q

67790   August 31, 2020 20:21   FXStreet   Market News  

After spending the second half of the previous week under modest bearish pressure, crude oil prices started the new week on a strong footing. As of writing, the barrel of West Texas Intermediate (WTI) was trading near $43.50, gaining 1.25% on a daily basis.

Germany: Annual HICP drops to -0.1% (preliminary) in August vs. 0% expected

67789   August 31, 2020 20:21   FXStreet   Market News  

• HICP in Germany declined to -0.1% on a yearly basis in August.
• EUR/USD continues to trade in the positive territory after the data. 

Inflation in Germany, as measured by the Consumer Price Index (CPI), was -0.1% (preliminary) in August. This reading followed July’s print of -0.5% and came in lower than the market expectation of 0%. On a yearly basis, the CPI was 0%.

Additionally, the Harmonized Index of Consumer Prices (HICP), the European Central Bank’s (ECB) preferred gauge of inflation, edged lower to -0.1% annually and fell short of analysts’ estimate of 0%.

Market reaction

These data don’t seem to be having a significant impact on the shared currency’s performance against its rivals. As of writing, the EUR/USD pair was up 0.3% on the day at 1.1938.