This is what you need to know to trade today Tuesday, August 31:
Markets are on track to end August on a high note, with the safe-haven dollar falling in a prolonged reaction to the Fed’s dovishness. Month-end flows could cause jitters and investors have plenty of numbers in focus, such as US consumer confidence, Eurozone inflation, Chinese PMIs, and Canadian GDP.
Optimistic mood: The major Wall Street indices closed at all-time highs on Monday, but also bonds remain on offer. Downward pressure on US Treasury yields is weighing on the dollar, which has resumed its declines after taking a breather on Monday.
Fed support: Federal Reserve Chairman Jerome Powell’s dovish speech on Friday continues to provide a tailwind for equities. The bank does not appear to be in a hurry to withdraw stimulus at its next meeting in September. Non-Farm Payrolls are expected as the next significant clue.
Geopolitics: Markets appear to be happy with the end of the US war in Afghanistan and the relatively small damage caused by Hurricane Ida in New Orleans.
Chinese weakness: Investors appear to be ignoring China’s disappointing Non-Manufacturing Purchasing Managers Index, which contracted and fell to 47.5 points last month. Beijing continues its pursuit of local tech companies, focusing on video games. The fall in Chinese stocks is not having an impact on the rest of the world.
The EUR/USD it has advanced towards 1.1850 ahead of the preliminary eurozone inflation figures for August. The Consumer Price Index is expected to reach 2.7% and the underlying CPI 1.5%, both increases. Final growth figures for France and Italy and employment statistics for Germany are also of interest.
USD / CAD it is trading below 1.26 as WTI crude rises to $ 70, curbing losses seen earlier this month. Canada publishes its Gross Domestic Product data for June and the entire second quarter. The nation could report an annualized increase of 2.5%.
US data: After the University of Michigan’s Consumer Sentiment Index plunged to its lowest levels in a decade in August, the Conference Board’s parallel publication is of further interest. Economists expect only a minor decline, as a result of the spread of the Delta COVID-19 variant.
Cases of coronavirus they continue to rise in the United States, but at a slowing pace. Globally, infections are flattening out, but a worrisome new variant was reported in South Africa.
Flows: A turbulent August comes to an end with money managers adjusting their portfolios. Erratic movements could be seen around the London close at 15:00 GMT.
Cryptocurrencies They have been going down, with Bitcoin changing hands around $ 47,000, Ethereum holding somewhat better near $ 3,200 and Cardano’s Ada around $ 2.70.
Gold It has benefited from the upbeat mood, extending its gains above $ 1,815.
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