- Overnight the dollar gained 0.7% against the euro and put pressure on commodity prices. Gold, silver and copper plunged to their lowest level in more than eight months on speculation that a accelerating U.S. inflation may limit the scope of the Federal Reserve to cut interest rates.
- Watch USDJPY 110.40, which is currently the most important resistance level for the USD. Weekly candles suggest massive upside in the cross, if broken.
- For the first time in 26 years, US consumers in May and June spend more on gasoline than vehicles and parts.
- Driven by the selloff in commodities Asian mining companies are dragged down this morning. Consumer stock on the other side benefit from this as lower input cost support margin and profits.
- FX: USD continuing higher, but USDJPY resistance at 110.40 not taken out yet… watch it.
- Fixed Income: Treasuries unaffected by the very elevated CPI figures yesterday.
- Stocks: Mixed European session. US gaining on continued USD strength.
- Commodities: Lower on USD strength. CRB index edging lower. Precious metals severely punished.
Overnight
- % expected.
- GE CPI YoY (Jul F) out at 3.3% as expected.
- SW Industrial Production MoM/YoY (Jun) out at 0.6%/-1.5% vs. -0.3%/-1.0%
- SW Average House Prices (Jul) out at 1.865M vs. 1.906K prior.
- EC E-Z CPI MoM/YoY (Jul) out at -0.2%/4.0% vs. -0.1%/4.1% expected.
- EC E-Z GDP QoQ/YoY (2Q A) out at -0.2%/1.5% as expected.
- EC E-Z CPI Core YoY (Jul) out at 1.7% vs. 1.8% expected.
- US CPI MoM/YoY (Jul) out at 0.8%/5.6% vs. 0.4%/5.1% expected.
- US CPI Ex Food & Energy MoM/YoY out at 0.3%/2.5% vs. 0.2%/2.4% expected.
- US Initial Jobless Claims out at 450K vs. 435K expected.
- US Continuing Claims out at 3417K vs. 3310K expected.
- US Natural Gas Storage out at 50 vs. 52 expected.
- NZ Retail Sales MoM (Jun) out at 0.9% vs. 0.0% expected.
- NZ Retail Sales Ex Auto MoM (Jun) out at 0.0% vs. -0.8% expected.
- AU Housing Affordability (2Q) out at 105.3 vs. 103.1 prior.
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on Friday, August 15th, 2008 at 4:39 pm and is filed under economics.
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