Data from China in focus

August 8, 2019

A reasonably quiet Thursday ahead as-far-as significant data releases go, but with volatility seemingly entrenching itself, we could be in for another interesting day.

The EURUSD opened and closed rather flat but there were some movements throughout the day. The pair started the day at $1.11960 and edged up to $1.12190 before falling to lows of $1.11782 mid-session. The euro bounced off those lows, rallying to a high of $1.12412 late in the day. It then fell away and is now trading at $1.12017. The GBPUSD opened at $1.21664 and began the day in positive fashion, hitting a high of $1.21903. Save for a few spikes here and there, the pound fell away for a large chunk of the session, bottoming-out at $1.21202 as it headed into late trading. It came off those lows with a brief rally but gave up some of those gains and is now trading at $1.21428.

The Dow looked set for another horrendous session until a rally late in the day basically reversed most of the earlier losses. The index started the day at 25,958.31 and traded in a tight range early, before lifting to a high of 26,094.12 mid-session. From there however, the Dow plummeted 650 points to hit a low of 25,445.68. Just when we thought the Dow was done and dusted for the session, it rebounded just as quick, piling back on almost as many points as it lost, surging to a near-session high of 26,082.64. It has since come of those high and is now trading at 25,929.68. The Dax took its lead from the Dow after opening at 11,575.53. The German index climbed to highs of 11,742.38 before reversing those gains and dropping to lows of 11,550.34 mid-session. However, it was dragged up by a surging Dow, with the Dax erasing just about all of the previous losses, closing at 11,721.52.

The day ahead shapes up to be an interesting one for markets as the last few days have been filled with wild swings across various indices, currencies and commodities. The most significant piece of information today is the Trade Balance figure from China. As the much-publicised trade war with the US heats up, it will be crucial to see what impact this has had on China’s trade surplus.

Other data published today includes:

Canada – NHPI

Europe – ECB Economic Bulletin

China – USD-Denominated Trade Balance

US – Unemployment Claims, Final Wholesale Inventories, Natural Gas Storage


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