Eurozone PPI and Its Impact on Inflation
- Eurozone Producer Price Index (PPI) (MoM) (Jul):
Today’s Eurozone PPI data came in line with expectations, posting a 0.2% increase in producer prices for the month of July. This is indicative of steady inflationary pressures at the production level that will likely keep the ECB in its present monetary policy stance with no changes anytime soon.
- Canada Consumer Price Index (CPI) (YoY) (Jul):
The market is awaiting the Canadian CPI data, which could play a role in shaping the next moves by the Bank of Canada regarding interest rates. The previous figure had a yearly inflation rate of 2.7%, and today’s release will be keenly watched.
- Fed’s Bostic and Barr Speeches:
Raphael Bostic and Michael Barr are due to speak later today. Markets would look for any clues from them on the Fed’s future policy path in light of mixed U.S. indicators lately.
Major Currency Pairs
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EUR/USD: The euro is currently trading at 1.10805 showing a minor daily gain of 0.05%. The pair has seen a 0.76% increase over the past week reflecting a slight strengthening of the euro as the PPI data supported the currency.
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GBP/USD: The pound is trading at 1.29942, with a slight daily gain of 0.04%. Over the week the pair has gained 1.00%, and on a monthly basis it’s up 0.49%. The pound remains supported by relatively stable UK economic data.
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USD/JPY: The dollar is stronger against the yen, currently trading at 147.017 with a daily increase of 0.21%. This pair has shown little movement over the past week with a 0.03% gain but remains down by 6.32% on a monthly basis reflecting the yen’s recent volatility against the dollar.
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AUD/USD: The Australian dollar is trading at 0.67296, showing a slight decline of 0.06% today. However AUD/USD has gained 1.39% over the past week and 1.38% over the month reflecting a recovery in the Aussie as global risk sentiment improves and commodity prices stabilize.
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NZD/USD: The New Zealand dollar is performing slightly better today, trading at 0.61280 up 0.18%. Over the past week NZD/USD has risen by 0.81% and it shows a strong monthly gain of 2.54%. The Kiwi’s gains are supported by improving economic data and positive investor sentiment.
Commodities
Gold: Gold is trading at $2,502.46 per troy ounce, with a slight decline of 0.05% today. However, it has shown strong gains of 1.59% over the past week and 4.49% over the month, indicating continued investor interest in the metal as a safe-haven asset amid global economic uncertainties.
Crude Oil: Oil prices are under pressure, with Brent crude currently trading at $73.257 per barrel, down 0.55% for the day. The weekly performance shows a more significant decline of 6.57%, and the monthly trend is also negative at -6.62%. The YoY figure reflects an overall drop of 8.22%, driven by concerns over global demand and ongoing geopolitical issues.
Political News
In the UK, ongoing debates around post-Brexit trade policies continue to create uncertainty, which could weigh on the pound in the near term. Any significant developments in these discussions could lead to increased volatility in GBP pairs.
In the US, the political landscape is heating up as we move closer to the election cycle. Economic policies, particularly around taxation and trade, are under intense scrutiny, and any major announcements could have immediate impacts on the USD.