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August 16, 2024

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Mexico: Moving Towards Deficit as Expected
Paying Article

August 16, 2024 8:10 PM UTC

Mexico's fiscal situation is becoming challenging, with a primary deficit emerging due to increased support for PEMEX and overestimated growth projections. The Debt/GDP ratio is expected to rise to around 50.8% by 2024, possibly stabilizing around 49-54% depending on fiscal consolidation efforts. Wh

FX Weekly Strategy: August 19th - 23rd
Paying Article

August 16, 2024 2:28 PM UTC

EUR may come under pressure if PMIs remain relatively weak
GBP strength a little extended but should continue if PMIs remain strong
SEK may be vulnerable even though Riksbank rate cut is largely priced in
CAD would benefit if inflation data surprises on the upside
JPY still has the most potential for vo

USD, JPY flows: JPY up after softer US housing starts
Paying Article

August 16, 2024 12:55 PM UTC

US July Housing starts the lowest since May 2020 extend JPY rise

Psychology for major markets August 16th
Paying Article

August 16, 2024 10:11 AM UTC

Better risk tone supporting higher yielders

Europe Summary and Highlights 16 August
Freemium Article

August 16, 2024 10:08 AM UTC

The USD was mostly weaker through the European morning.

This week's five highlights
Freemium Article

August 16, 2024 10:00 AM UTC

Surprising Ukraine Incursion in Russia
RBNZ Begin Cutting
U.S. July Core CPI below 0.2% before rounding for a third straight month
UK Inflation Up on Energy But Services Resilience Diminishes
Soft Start to Q3 for China

FX Daily Strategy: N America, August 16th
Paying Article

August 16, 2024 9:04 AM UTC

Relatively clear Friday
NZ PPI Suggest Speed Bump for RBNZ
USD/JPY Remains in Consolidation

Chart EUR/CHF Update: Consolidating test of strong resistance at .9580/.9600 area
Paying Article

August 16, 2024 7:59 AM UTC

Settling back from the .9580 high as prices consolidate strong gains from the .9210 low

Chart EUR/GBP Update: Correcting July/August rally
Paying Article

August 16, 2024 7:42 AM UTC

Prices remain under pressure to extend losses from the .8625 high to correct the strong July/August rally

Chart USD/CHF Update: Consolidating test of .8740 Fibonacci level
Freemium Article

August 16, 2024 7:24 AM UTC

Clear break above the .8700 level has seen extension to the .8740, 50% Fibonacci retracement

Chart AUD/JPY Update: Extending gains
Paying Article

August 16, 2024 6:44 AM UTC

Break above the 98.00 level further extend gains from the 90.15 low

GBP flows: GBP firm after retail sales
Paying Article

August 16, 2024 6:35 AM UTC

GBP rising a little after retail sales, which were much as expected but supported the impression of an improving UK economy.

Chart USD/CNH Update: Extend choppy trade above 7.1400
Paying Article

August 16, 2024 6:17 AM UTC

Turned back up from the 7.1305 low to extend choppy trade around the 7.1400/7.1800 area

Chart USD/INR Update: Extend consolidation below 83.9725, all-time high
Paying Article

August 16, 2024 5:47 AM UTC

Little change, as prices remains in consolidation below the 83.9725, all-time high

Asia Summary and Highlights 16 August
Freemium Article

August 16, 2024 4:48 AM UTC

RBNZ's Assistant Governor Silk says the Bank is taking a measured approach to rate cuts with NZ Q2 PPI Beats

FX Daily Strategy: Europe, August 16th
Paying Article

August 16, 2024 4:45 AM UTC

Relatively clear Friday
NZ PPI Suggest Speed Bump for RBNZ
USD/JPY Remains in Consolidation

USD/JPY flows: USD softer in Asia
Paying Article

August 16, 2024 4:42 AM UTC

USD is trading broadly softer on Friday

NZD/USD flows: Q2 PPI Higher
Paying Article

August 16, 2024 4:36 AM UTC

RBNZ's Assistant Governor Silk says the Bank is taking a measured approach to rate cuts
Q2 PPI Beats

Chart USD/IDR Updates: Extending corrective bounce from 15600 low
Paying Article

August 16, 2024 3:14 AM UTC

 Turned up from the 15600 level as prices unwind the oversold intraday and daily studies

Chart USD/THB Update: Scope for stronger corrective bounce
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August 16, 2024 3:01 AM UTC

Turned up from the 34.83 spike low as prices consolidate recent sharp losses from the 37.00, June high

Chart USD/KRW Update: Sill heavy, 1355.00 support at risk
Paying Article

August 16, 2024 2:47 AM UTC

 Little change, as prices extend consolidation above the 1355.00 support

Chart USD/SGD Update: Corrective bounce from 1.3140, fresh year low
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August 16, 2024 2:41 AM UTC

Turned up from fresh year low at 1.3140 as prices unwind the stretched intraday and daily studies

Chart GBP/USD Update: Extending gains
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August 16, 2024 2:18 AM UTC

Break above the 1.2860 resistance see room to further extend gains from the 1.2665 low of last week

Chart EUR/USD Update: Room for deeper corrective pullback
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August 16, 2024 2:02 AM UTC

Consolidating test of the 1.0950 support but a deeper pullback not ruled out

Chart EUR/JPY Update: Reached strong resistance at 164.00/30
Paying Article

August 16, 2024 1:32 AM UTC

Break above the 162.00/162.45, congestion and 38.2% Fibonacci level, has seen gains to reach strong resistance at the 164.00 level

Chart USD/JPY Update: Reached 149.40, 38.2% Fibonacci level
Paying Article

August 16, 2024 1:12 AM UTC

Consolidation within the 148.00/146.00 range has given way to sharp break higher to extend gains from the 141.69 low

Chart NZD/USD Update: Scope for deeper corrective pullback
Paying Article

August 16, 2024 12:42 AM UTC

Prices remain under pressure following rejection from resistance at the .6080/.6100 congestion and 61.8% Fibonacci retracement

Chart AUD/USD Update: Consolidating below .6643 high
Paying Article

August 16, 2024 12:17 AM UTC

Consolidating above the .6600 level after break here was checked at the .6565 support

Asia Open - Overnight Highlights
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August 16, 2024 12:00 AM UTC

EMERGING ASIA
EM currencies perform mostly weaker against the USD with the greenback gaining strongly on strong U.S. data. SGD and CNY saw the largest losses of 0.47%, followed by CNH 0.45%, MYR 0.39%, CNH 0.43%, MYR 0.39%, IDR 0.11%, THB 0.10% and HKD 0.06%; the only winners are PHP 0.05% and TWD 0.

August 15, 2024

North American Summary and Highlights 15 August
Freemium Article

August 15, 2024 8:00 PM UTC

Overview - After a quiet European morning the USD bounced on stronger retail sales and initial claims data, though with equities strong the riskier currencies saw some recovery from their initial losses. 

FX Daily Strategy: Asia, August 16th
Paying Article

August 15, 2024 7:30 PM UTC

Relatively clear Friday
NZ PPI Should Support OCR Revision
USD/JPY Remains in Consolidation

Preview: Due August 29 - U.S. Preliminary (Second) Estimate Q2 GDP - Marginally stronger still
Paying Article

August 15, 2024 3:52 PM UTC

We expect the second (preliminary) estimate for Q2 GDP to be revised marginally up to 2.9% from an already strong first (advance) estimate of 2.8%. 

Preview: Due August 16 - U.S. July Housing Starts and Permits - To slip back after multiples-led gains in June
Paying Article

August 15, 2024 3:27 PM UTC

We expect July housing starts to fall by 6.1% to 1270k after a 3.0% increase in June, while permits fall by 6.5% to 1360k after a 3.9% increase in June. June’s gains came fully in the volatile multiples sector.

Chart USD/CAD Update: Cautious trade - studies remain under pressure
Freemium Article

August 15, 2024 3:22 PM UTC

Little change, as mixed intraday studies keep near-term sentiment cautious 

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Argentina: CPI at 4.0% in July
Paying Article

August 15, 2024 2:52 PM UTC

Argentina's July CPI rose 4.0%, the lowest since January 2022, yet still above the 2% crawling peg, suggesting real exchange rate appreciation. Year-over-year CPI fell to 263% from 271% in June, with further declines anticipated. Despite some inflation reduction under Milei, price distortions and re

U.S. Fed's Musalem seems comfortable with state of economy
Paying Article

August 15, 2024 2:00 PM UTC

Fed's Musalem is pleased with recent inflation data, not alarmed by recent activity data.

Chart AUD/USD Update: Choppy in range - studies coming under pressure
Paying Article

August 15, 2024 1:47 PM UTC

The test below 0.6600 has bounced from 0.6560

U.S. July Industrial Production - Weakness due to temporary factors
Freemium Article

August 15, 2024 1:47 PM UTC

July industrial production is weaker tan expected at -0.6% overall and-0.3% for manufacturing with strong data in June seeing significant negative revisions, though Hurricane Beryl was seen as taking 0.3% off the July data, while a sharp drop in autos took 0.6% off manufacturing output, leaving the

Chart EUR/JPY Update: Extending gains, but scope to remain limited
Paying Article

August 15, 2024 1:31 PM UTC

Cautious trade has given way to anticipated gains

Chart USD/JPY Update: Sharp break higher, but scope to remain limited
Paying Article

August 15, 2024 1:19 PM UTC

Cautious trade has given way to a sharp break higher in both USD- and JPY-driven trade

Chart USD Index DXY Update: Corrective gains to remain limited
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August 15, 2024 12:59 PM UTC

Cautious trade around 102.50 has given way to a reactive bounce

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U.S. July Retail Sales and Initial Claims show resilience, easing slowdown fears
Paying Article

August 15, 2024 12:52 PM UTC

July retail sales with a stronger than expected 1.0% increase shows the consumer still has some momentum at the start of Q3, while a dip in initial claims to 227k from 234k suggests the labor market is not seeing increased weakness in early August. August manufacturing surveys from the Philly Fed at

Chart EUR/PLN Update: Pressuring 4.2750 - daily studies falling
Paying Article

August 15, 2024 11:14 AM UTC

Little change to the bearish tone, as negative intraday studies extend losses to support at congestion around 4.2750

Chart USD/ZAR Update: Approaching critical support at 17.8660
Paying Article

August 15, 2024 10:55 AM UTC

Still no change to the bearish tone, as anticipated losses pressure congestion support at 18.0000

Chart EUR/CAD Update: Mixed daily studies to limit any fresh tests higher
Paying Article

August 15, 2024 10:22 AM UTC

The anticipated break above 1.5100 has met selling interest around 1.5138

Europe Summary and Highlights 15 August
Freemium Article

August 15, 2024 10:05 AM UTC

Europe session 
Subdued summer trading in Europe, with not much movement in spot rates.  Next focus is the U.S. retail sales data.  However, traders are also looking ahead to Fed Powell comments at Jackson Hole at the end of next week to see whether the Fed chair is leaning towards 25bps or 50bps