This is what you need to know to trade today Monday August 15th:
Having closed the previous week on firm footing, the dollar remains resilient against its main rivals early on Monday, with the Dollar Index extending its rally towards 106.00. There will be no big-impact data on the European economic docket on Monday, but the German Bundesbank will release its monthly report. In the second half of the day, data from the Federal Reserve Bank of New York, the Empire Manufacturing Survey and the US NAHB Housing Market Index are expected to provide further momentum.
Over the weekend, the Wall Street Journal reported that Chinese authorities were planning for President Xi Jinping to meet with his American counterpart Joe Biden in November. On the other hand, an American delegation arrived in Taiwan on Sunday, which does not allow the tensions between the United States and China to subside. Reflecting markets’ caution, US stock index futures are down 0.2%-0.3%. Meanwhile, the 10-year US Treasury yield continues to move sideways above 2.8%.
In the early hours of the Asian session, data from China showed retail sales rose 2.7% on a yearly basis, missing market expectations of 5% by a wide margin. Other data revealed that industrial production rose 3.8% in the same period, versus analysts’ estimate of 4.6%.
Pressured by disappointing Chinese data and gloomy markets, the AUD/USD and the NZD/USD they were down more than 0.5% at time of writing.
The EUR/USD trades in negative territory below 1.0250 in early European morning Monday as the shared currency struggles to find demand in a risk-averse market environment. A recent survey by Bloomberg showed economists believe a eurozone recession is now more likely.
The GBP/USD it continues to drop towards 1.2100 in the early hours of Monday, after having lost almost 100 pips on Friday. Reuters reported on Monday that 30 of 51 economists surveyed expect the Bank of England to raise its policy rate by 50 basis points to 2.25% at the September policy meeting.
The USD/JPY it continues to fluctuate in a relatively tight range above 133.00 on Monday. Earlier in the day, data from Japan revealed that real Gross Domestic Product expanded 0.5% on a quarterly basis in the second quarter. This figure was slightly lower than market expectations of 0.6%, but did not provoke a significant reaction from the market.
The Prayed it remains on the defensive as it has failed to break above $1,800. At the time of writing, XAU/USD was down 0.6% on the day at $1,792.
After the hectic action of the weekend, the Bitcoin it gained traction and rose above $24,500. Ethereum It gained nearly 14% last week and is trading just shy of $2,000 as of early Monday morning.
Source: Fx Street
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