Walid Salah Eldin
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New week of lower demands for jobless benefits and higher than expected retail sales in July in US could help the investors to load back more risky assets sending Dow Jones Future Index higher, after the turmoil which havocked the equities markets, following the release of July US Labor report a week ago.
Even without new Fed’s hawkish comments, the data were enough to bring back the trust in the US economy which has grown initially by 2.8% in the second quarter, after growth by half of this percentage in the first quarter, showing resilience of the US economy with the current Fed’s restrictive stance to contain inflation.
The Initial Jobless Claims for the week ending on Aug. 10 came down for the second week in row to 227K, while the consensus was referring to retreating to 235K only from 234K a week earlier.
July Retail sales increased monthly by 1% monthly, after retreating by 0.2% in June, while the consensus was referring to rising by only 0.3% and by excluding the autos sales, the figure rose by 0.4%, which the median forecast was pointing to rising by only 0.1%.
The import prices and the exports prices have shown also higher than expected imported inflation and generated inflation of the US economy to the others in July.
July Export prices rose monthly by 0.7%, while the consensus was referring to no change, after declining by 0.3% in June, as the import price rose by 0.1%, while the forecast was referring to retreating by 0.1%, after no change in June.
Dow Jones Future Index could easily surpass 40k psychological level and has fo0ting above it before ending the session at the top of it in another bullish sign.
USD could score gains against its main rival currencies coming closer to 150 psychological level against the Japanese yen again driving Nikkei 225 future rates higher with new wave of loading back risks.
While EUR/USD was falling below 1.10 psychological level too to be traded currently near 1.096, while GBP/USD could gain back all what it lost, as it was still unpinned by stronger than expected manufacturing and industrial productions in June as we have seen earlier to be traded currently near 1.286.
The next main event of this month is expected to be Jackson Hole Symposium, with all eyes are on the monetary policies outlook to detect any change of the Governors’ policies who are to meet after nearly a week from now by God’s will, as Fed is shifting to easing.
While BOJ is shifting to tightening, raising until now the short-term policy rate to 0.15%, stating tapering of its JGB QE monthly purchases to about 3tr yen into the January to March 2026 quarter.
Have a good day
Kind Regards
Global Market Strategist of FX-Recommends
Walid Salah El Din
Even without new Fed’s hawkish comments, the data were enough to bring back the trust in the US economy which has grown initially by 2.8% in the second quarter, after growth by half of this percentage in the first quarter, showing resilience of the US economy with the current Fed’s restrictive stance to contain inflation.
The Initial Jobless Claims for the week ending on Aug. 10 came down for the second week in row to 227K, while the consensus was referring to retreating to 235K only from 234K a week earlier.
July Retail sales increased monthly by 1% monthly, after retreating by 0.2% in June, while the consensus was referring to rising by only 0.3% and by excluding the autos sales, the figure rose by 0.4%, which the median forecast was pointing to rising by only 0.1%.
The import prices and the exports prices have shown also higher than expected imported inflation and generated inflation of the US economy to the others in July.
July Export prices rose monthly by 0.7%, while the consensus was referring to no change, after declining by 0.3% in June, as the import price rose by 0.1%, while the forecast was referring to retreating by 0.1%, after no change in June.
Dow Jones Future Index could easily surpass 40k psychological level and has fo0ting above it before ending the session at the top of it in another bullish sign.
USD could score gains against its main rival currencies coming closer to 150 psychological level against the Japanese yen again driving Nikkei 225 future rates higher with new wave of loading back risks.
While EUR/USD was falling below 1.10 psychological level too to be traded currently near 1.096, while GBP/USD could gain back all what it lost, as it was still unpinned by stronger than expected manufacturing and industrial productions in June as we have seen earlier to be traded currently near 1.286.
The next main event of this month is expected to be Jackson Hole Symposium, with all eyes are on the monetary policies outlook to detect any change of the Governors’ policies who are to meet after nearly a week from now by God’s will, as Fed is shifting to easing.
While BOJ is shifting to tightening, raising until now the short-term policy rate to 0.15%, stating tapering of its JGB QE monthly purchases to about 3tr yen into the January to March 2026 quarter.
Have a good day
Kind Regards
Global Market Strategist of FX-Recommends
Walid Salah El Din
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