Busy end to the week for markets

July 31, 2020

A stack of data is scheduled for release today as we round out a hectic week for markets.

The USD continues to get belted, with the euro and pound both beneficiaries. The EURUSD opened Thursday at $1.17901 and declined to lows of $1.17298 mid-session. Bouncing off those lows, the euro rallied to a late high of $1.18477. It has continued that form into Friday and is now trading at $1.18696. The GBPUSD started the day at $1.29954 and slid to lows of $1.29432 mid-session. The pound rebounded, powering its way to a high of $1.31019. Like the euro, the pound has lifted further and is now trading at $1.31244.

The Dow looked like enduring a disastrous session until a rally late in the day erased a lot of the earlier losses. The index opened at 26,573.35 and ticked up to a high of 26,578.13 in the first hour of trade. The decline began shortly afterwards and accelerated mid-session as news broke that US economy contracted by 32.9% in the June quarter, with the Dow plummeting to lows of 25,989.95. Late-session trading saw the index surge to 26,521.95. It has come away from that level in early Friday trading and is now at 26,442.30. The Dax was hammered overnight and stubbornly remained steady as the Dow rallied late. The German index opened at 12,846.68 and edged up to a high of 12,869.40 early. A sharp sell-off mid-session saw the Dax tumble to a low of 12,243.94. It regained a small amount of those losses and is now trading at 12,419.01.

A host of data from around the world is scheduled for publication today in what could end up being a volatile end to the week. Friday also tends to throw up a few surprises before the week wraps up.

Data released today includes:

UK – Nationwide HPI

Canada – GDP, IPPI, RMPI

Japan – Consumer Confidence, Housing Starts

US – Personal Spending, Core PCE Price Index, Employment Cost Index, Personal Income, Chicago PMI, Revised UoM Consumer Sentiment & Inflation Expectations

Europe – German, Italian and Swiss Retail Sales, French & Italian Prelim CPIs, European Prelim Flash GDP, Italian Prelim GDP, Spanish Flash GDP, French Consumer Spending, European CPI and Core CPI Flash Estimates


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