Focus on Economic Data: What to Expect from European Markets Today

Economic Data: The Dollar Dips, Gold Edges Up; Key Data and Central Bank Updates Could Impact Currencies and Commodities – European Markets Today.

Asia Session Overview

In the Asia session, the dollar index (DXY) fell below 101, and gold prices increased to $2,520 per ounce amidst a quiet market. Attention is shifting to the U.S. session, where traders will closely monitor the preliminary Q2 GDP results and the latest unemployment claims.

Europe and U.S. Session Expectations

In Europe, Germany’s preliminary CPI for August, which followed a 0.3% MoM rise in July, is expected to remain unchanged. A decline or unexpected downside surprise could pressure the Euro and limit its recent gains.

Swiss National Bank (SNB) Chairman Thomas Jordan will speak in Basel. Traders will be watching for hints about a possible third rate cut following reductions from 1.75% to 1.25% earlier this year. Such insights could weigh on the Swiss Franc and impact the USD/CHF pair.

Dollar Index (DXY) and Key Events

Key Events:

• GDP (12:30 PM GMT)
• Unemployment Claims (12:30 PM GMT)

The preliminary Q2 GDP is forecasted to remain at 2.8% YoY, reflecting a robust economic rebound. Meanwhile, moderating unemployment claims could further support the dollar.

Central Bank Notes:

• The Federal Reserve has kept the Fed Funds Rate target range at 5.25%-5.50% for eight consecutive meetings.
• Future adjustments will depend on inflation trends and economic data.

Gold (XAU)

Gold prices may face pressure if the dollar strengthens due to steady GDP and declining unemployment claims.

Next 24 Hours Bias: Weak Bearish

Focus on Economic Data: What to Expect from European Markets Today

The Australian Dollar (AUD)

Key Events:

• No major news events.

The AUD is testing resistance levels around 0.6800, with fluctuations expected.

Support: 0.6750
Resistance: 0.6860

The Kiwi Dollar (NZD)

Key Events:

• No major news events.

The NZD is approaching resistance at 0.6300, with potential gains limited.

Support: 0.6200
Resistance: 0.6300

The Japanese Yen (JPY)

Key Events:

• No major news events.

The JPY fluctuated between 145 and 144.20 against the dollar.

Support: 142.00
Resistance: 147.00

The Euro (EUR)

Key Events:

• Germany CPI (Tentative)

The Euro may face headwinds if Germany’s CPI shows a decline.

Support: 1.3180
Resistance: 1.3300

The Swiss Franc (CHF)

Key Events:

• SNB Chairman Jordan Speaks (4:00 PM GMT)

Jordan’s speech may hint at further rate cuts, impacting the Franc.

The Pound (GBP)

Key Events:

• No major news events.

The GBP stabilized around 1.3170 after falling below 1.3200.

Support: 1.3180
Resistance: 1.3300

The Canadian Dollar (CAD)

Key Events:

• No major news events.

The CAD saw a slight retracement, with USD/CAD rising to 1.3490 before settling around 1.3460.

Support: 1.3380
Resistance: 1.3490

Oil

Oil prices fell to $75.20 per barrel due to smaller-than-expected inventory declines and ongoing supply concerns in Libya.

Next 24 Hours Bias: Medium Bearish

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