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July data featured another positive reading of the Index of Leading Indicators, despite a decline in both housing permits and starts. Industrial production and retail sales were also both positive, although manufacturing production was slightly negative and capacity utilization was flat. Read more
The combination of terror attacks, and ongoing U.S. political gyrations riled markets again in N.Y. on Friday, taking USD-JPY to four month lows of 108.61 in the process, as risk-off conditions prevailed. Later in the session, it became clear that White House advisor Bannon was on his way out, which quickly brought a relief rally to Wall Street, and saw USD-JPY jump better than 70 points to session highs of 109.60. Read more
OVERVIEW House price growth in China slowed more than expected in July, with prices rising 9.7%. Canadian inflation ticked up to 1.2% in July but remained well below the Bank of Canada's 2.0% target. US consumer sentiment rose more than expected to 97.6 in August. HIGHLIGHT After falling back from its highest levels since November at the start of the week as tensions over North Korea eased, the volatility index (VIX) often referred to as the fear gauge, has spiked again in light of the atrocities in Spain. US DOLLAR The US Dollar is set to end the week flat as expectations for US rate hikes once again slip amid soft US inflation and concerns over President Trump's growth agenda. Read more
The yen and safe have assets remained in demand amid a backdrop of U.S. political concerns, which boils down to reduced odds for the implementation of Trump's pro-growth agenda, with the latest terror attack on a Western nation by Islamist extremists, this time in Barcelona, also in the mix. Read more
OVERVIEW Eurozone second quarter growth was upgraded to 2.2% year-on-year. FOMC minutes showed Fed members were becoming increasingly wary about recent weak inflation. UK government says it is "confident we will have made sufficient progress by October to advance the (Brexit) talks to the next phase”. UK retail sales rose 0.3% in July, annual growth halved. Eurozone inflation was stable at just 1.3% in July, though core inflation increased to 1.3%. Unemployment in Australia fell to 5.6% in July, from 5.7% in June. HIGHLIGHT The Euro fell to a 3-week low after the minutes from the ECB's last meeting showed policymakers were highly aware of the risk that the Euro could threaten the ECB's efforts to get inflation back to its 2% target. Read more
The dollar was mixed in N.Y. trade on Thursday, losing ground to the euro and yen, while posting modes gains against the CAD. Cable was relatively steady. Incoming U.S. data was net positive, as jobless claims fell more than expected, the Philly Fed fell less than anticipated, and industrial production was firmer, though under consensus forecasts. Read more
My formative years stretched from the mid-1970s to mid-1980s. While my economic awareness at the time was at best weak, I do remember that inflation was a very important issue that was constantly on my father’s mind. It’s also obvious that this period continues to haunt today’s central bankers as they continue to worry about inflationary pressures despite all evidence to the contrary. Read more
EUR-USD ebbed back under 1.1700, over 70 pips down from pre-Europe levels in a move composed of about one part general dollar firming and about three parts general euro weakening. Relatively sustained selling of EUR-JPY, traded at three-day lows, drove broader declines in the common currency. Read more
The yen has seen its safe haven bid revived following the collapse of Trump's business councils. The Japanese currency is showing a 0.3% bid going into the London interbank open, although the currency is off its highs. USD-JPY logged a three-day low at 109.76. Read more
 often referred to as the fear gauge, has spiked again in light of the atrocities in Spain.
US DOLLAR
The US Dollar is set to end the week flat as expectations for US rate hikes once again slip amid soft US inflation and concerns over President Trump's growth agenda.&p[images][0]=http://xecommunityassets.s3.amazonaws.com/Aug%2018%20Chart_0.png){kind=link}
