Intraday Market Thoughts

Onto Consumer Confidence & Canadian CPI

by Patrik Urban
Aug 17, 2012 13:10

Risk rally sees no follow-through; AUD weakens; German PPI flat; Eurozone current and trade surpluses rise; Periphery yields. Attention turns to Canadian CPI and University of Michigan consumer confidence. 1 EURUSD, AUDJPY and oil hit all their targets. See more on rest of Premium Insights below.

Yesterday's risk rally that was attributed to Merkel's comments backing the ECB stalled and the greenback was able to recover a portion of its losses against most majors. The common currency continues to trade near session highs around 1.2360 and USDJPY pushed higher to 79.49. European equities are gaining about 0.3% and the relative strength winner is USD while AUD and NZD lag.

AUDUSD trades weaker around 1.0440, mainly on the back of sharp losses that the Aussie is experiencing on the crosses, especially against EUR and CAD.

On the data front we learned that German PPI was flat in July from previous -0.4% m/m (0.9% from 1.6% y/y) and that Eurozone current account surplus rose to EUR 12.7 bln in June from 10.3 bln in May. Trade surplus increased to EUR 14.9 bln from 7.1 bln.

Spanish and Italian yields moved slightly lower and are trading around 6.44% and 5.78% respectively.

The NY session begins at 8:30 am ET with Canadian CPI that is expected to rise 0.2% from -0.4% m/m and keep steady at 1.5% y/y. Core CPI is projected to also rise 0.2% from -0.4% m/m and to remain at 2.0% y/y.

US reports are limited to the University of Michigan consumer confidence at 9:55 am that is expected to increase marginally in August to 72.5 from previous 72.3 and to leading indicators at 10:00 am that are seen at 0.2% in July from previous 0.3% decline.

1 of 2 EURUSD Premium longs hit their final and so did oil and AUDJPY, while USDJPY. 1 GBPUSD, EURUSD, both gold and CADJPY are all in progress, while the other GBPUSD was stopped out Direct Access to these Insights is found here: Non subscribers can click here:


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