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The moon has phases, people have joys and sorrows, whether life has changes, the year has four seasons, after the long night, you can see dawn, suffer pain, you can have happiness, endure the cold winter, you don’t need to lie down, and after all the cold plums, you can look forward to the New Year.
Hello everyone, today XM Foreign Exchange will bring you "[XM Foreign Exchange Market Review]: The US dollar is at the key, and PCE inflation data stabilizes before the release of the release." Hope it will be helpful to you! The original content is as follows:
On August 29, the US dollar (USD) gained a foothold earlier on Friday after three consecutive days of declines. In the second half of the day, market participants will closely monitor German Consumer Price Index (CPI) data and the U.S. Personal Consumer Expenditure (PCE) price index, which is the Fed's preferred inflation indicator.
The U.S. dollar index continued to fall slightly on Thursday as the market remained positive about risks. However, optimistic macroeconomic data released by the United States helped the dollar limit the decline. The Bureau of Economic Analysis (BEA) revised its annualized GDP growth rate in the second quarter to 3.3% from an initial estimate of 3.1%. In addition, the number of people who requested initial jobless claims per week fell to 229,000 from 234,000 in the previous week. Earlier on Friday, the U.S. stock index futures fell 0.1% to 0.2%. On an annual basis, core PCE inflation is expected to rise slightly to 2.9% in July from 2.8% in June.
Earlier that day, German data showed that retail sales in July fell by 1.5% month-on-month. The figure was released after a 1% increase in June, down 0.4% lower than market expectations. Germany's annual CPI inflation rate is expected to rise to 2.1% in July. EUR/USD traded in a narrow channel slightly above 1.1650 in early European session after gaining about 0.4%.
The USD/Canada fell to its lowest level in three weeks on Thursday, close to 1.3740. The pair struggled to recover its momentum earlier on Friday and was slightly above 1.3750fluctuation. Statistics Canada will release second-quarter GDP data later that day.
Japanese Finance Minister Katsunobu Kato said on Friday that he was aware of the rising interest rates, adding that he would continue to engage with bond market participants and manage debt policies appropriately. Meanwhile, data from Japan showed that the Tokyo Consumer Price Index rose 2.6% year-on-year in August after rising 2.9% in July. The U.S. dollar/yen fell 0.3% on Thursday, found support in the European session and was slightly above 147.00.
GBP/USD rose slightly on Thursday for the third straight day, but lost traction earlier on Friday. As of press time, the pair was down below 1.3500.
Gold prices fell in early European session, but managed to hold above $3,400.
Euro: The intraday deviation of the euro/dollar is currently neutral. As long as the 1.1573 support level is held, further rise will be beneficial. Breakthrough 1.1741 will resume the rebound from 1.1390 and retest the 1.1829 high. The firm breakthrough there will continue a larger upward trend. However, a decisive breakthrough of 1.1573 will continue the correction pattern of 1.1829 and fall again with a target of 1.1390.
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