European data in focus

August 30, 2018

Plenty of information around today, but it is Europe where markets turn their interest to.

The EUR/USD strengthen overnight after threatening to head back to $1.16. The pair opened at $1.16926 and remained steady early. Mid-session trading saw the euro drop over a few hours to a low of $1.16511. It was able to rebound quickly of that low however, rallying to a very late high of $1.17093. It is not far off that high, currently trading at $1.17075. The GBP/USD had an incredible session, climbing around one and a half cents from its low. The pair opened at $1.28672 and remained rather flat throughout early trading before dipping to a low of $1.28439 mid-session. It bounced off those lows in a big way, surging to a high of $1.30313 late in the session. It is trading higher again this morning, currently sitting at $1.30343.

The Dow endured a roller coaster session after opening at 26,079.87. The index looked promising early, climbing to 26,139.29 before tumbling over the following few hours to a low of 26,040.34. The Dow then rallied over the next couple of hours to a high of 26,174.17 before pulling back slightly, currently trading at 26,128.40. The Dax closed higher after opening at 12,534.85. The German index fell to an early low of 12,497.40 before recovering. It managed to climb to a high of 12,575.80 late, dipped a little and closed at 12,566.90.

The day ahead sees plenty of data being released, with attention turning to Europe for the most significant data publication. Germany will be publishing Prelim CPI data later tonight. As the foremost piece of information used to determine inflation within an economy, this will take on extra significance due to Germany being the largest economy in Europe. Other data set for release include:

NZ – ANZ Business Confidence

Canada – GDP

Japan – Tokyo Core CPI, Unemployment Rate, Prelim Industrial Production

Australia – Private Capital Expenditure, HIA New Home Sale, Building Approvals

UK – M4 Money Supply, Mortgage Approvals, Net Lending to Individuals, GfK Consumer Confidence

US – Core PCE Price Index, Personal Spending, Personal Income, Unemployment Claims, Natural Gas Storage

Europe – German Import Prices, Spanish Flash CPI, KOF Economic Barometer, German Unemployment Change, German Bub President Jens Weidmann speaks


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