Today's Market Movers

Market Overview

Yesterday's data release highlighted the resilience of the U.K. economy, with growth observed in both the Manufacturing and Services sectors. Notably, the Manufacturing PMI rose to 52.5, marking its strongest level since August 2022. In contrast, France experienced a decline in its Manufacturing PMI, dropping to 42.1 from 44, while its Services PMI improved to 55 from 50, indicating acceptable growth in that sector. However, Germanys Manufacturing and Services sectors both showed contraction, reflecting ongoing challenges in its overall economy. Despite this, the downturn is consistent with the trend seen in recent years and may not raise significant concerns.

In the U.S., unemployment claims rose to 232k, aligning with analysts' expectations, and supporting the outlook for potential rate cuts. The Manufacturing PMI contracted more than anticipated, falling to 48, while the Services PMI improved to 55.2, exceeding June's figures. Although the Services sector has maintained this trend for several months, expectations for a rate cut remain unchanged.

Market attention now shifts to Governor Ueda‘s speech this morning, Canadian Sales data, and FED Chair Powell’s remarks later today. Tomorrow's Jackson Hole Symposium will be the focal point for analysts seeking clues on the timing of the expected rate cut.

GOLD -GOLD prices retracted after yesterday's trading, showing signs of correction after several days of sideways movement near the highest levels. Although the Asian session opened higher today, we anticipate further consolidation until FED Chair Powell's speech and tomorrow's Jackson Hole Symposium. We will wait for further price action to determine near-term price movements.

SILVER -SILVER prices have corrected after days of sideways trading, supported by the 29.018 level. While we still anticipate further bullish runs in this market, we await more price action to clarify the immediate direction. In the meantime, further consolidation is expected until the upcoming announcement from FED Chair Powell regarding potential rate cuts.

DXY -The DOLLAR has recovered slightly after yesterday's trading, indicating a corrective move. We anticipate that the price may consolidate at this level for several hours before potentially dropping to lower levels. Depending on the forthcoming announcement, there is a chance the price may turn upward and initiate a bullish run, possibly marking the lowest point of the 3rd quarter. We will monitor further price action for a clearer trend.

GBPUSD - The Pound has gained considerably despite the dollar's corrective increase, driven by positive growth in both the U.K.'s Manufacturing and Services sectors. This may delay BOE rate cut expectations. We expect further growth for the Pound against the dollar.

AUDUSD - The Aussie dollar has lost momentum and has been dragged lower. However, we anticipate further buying interest to emerge as market expectations for rate cuts persist. Despite the current weakness in the Aussie, we foresee a potential recovery in the market.

NZDUSD -The Kiwi has gained considerably during the Asian session and has maintained a consolidated position, reflecting confidence in the New Zealand economy for the coming months, following the early start of their rate cut cycle. This strength persists despite more rate cuts entering the market as inflation expectations by the government are near their target.

EURUSD -The Euro is currently struggling to break beyond 1.11386. However, we do not discount the possibility of the price moving past this level. We anticipate further growth in the market moving forward.

USDJPY -The Yen has strengthened following Governor Ueda's speech, which fueled more confidence after days of uncertainty. The speech highlighted that monetary policy will remain flexible but may include easing measures once the economy reaches its price targets. This indicates the potential for further rate hikes until the government is more confident in economic forecasts. The importance of FX movements was also noted, as they may impact future projections.

USDCHF -The Franc is currently trading near its lows, indicating strong CHF performance. This strength is expected given the current global economic conditions. We anticipate further growth and strength for the CHF, leading to continued bearish movements in the USDCHF pair.

USDCAD -Major news is expected for the Loonie, which could significantly impact price action and rate cut expectations. We will monitor further price action and data releases before making additional forecasts for this market.