Wednesday Highlights: This week starts off with key data releases in Japan, where the Trade Balance and Exports (YoY) will impact the JPY, shedding light on the country's trade dynamics. Meanwhile, the German 10-Year Bund Auction is expected to influence the EUR. In Canada, housing data such as the New Housing Price Index and RMPI will be significant for the CAD. In the U.S., focus will be on Crude Oil Inventories, Cushing Crude Oil Inventories, and the 20-Year Bond Auction. Additionally, the FOMC Meeting Minutes will give critical insights into U.S. monetary policy, potentially affecting the USD.
Thursday Focus: Key economic data from Japan will continue with the Jibun Bank Japan Services PMI, affecting the JPY, while multiple HCOB PMI indices from Germany and the Eurozone will impact the EUR. For the UK, S&P Global/CIPS PMIs will drive the GBP. The ECB's Monetary Policy Meeting Account and the Jackson Hole Symposium are also key events that could influence the EUR and USD. In the U.S., Jobless Claims, S&P Global PMIs, and Existing Home Sales will be critical, affecting the USD. Meanwhile, Retail Sales in New Zealand and Mexico's Monetary Policy Meeting Minutes will move the NZD and MXN respectively.
Friday Summary: Japan will release its National Core CPI, which could reflect inflationary pressures and impact the JPY. In the U.S., economic updates continue with Building Permits and New Home Sales, while the Jackson Hole Symposium will draw significant attention, particularly with Fed Chair Powell’s speech. Canadian Retail Sales and Core Retail Sales figures will also shape expectations around the CAD. Additionally, BOE Governor Bailey’s speeches and CFTC speculative net positions in GBP, USD, AUD, JPY, and EUR will provide further insights for traders.
DXY – 4h Chart
The U.S. Dollar Index (DXY) is currently poised for a potential move towards the 101.30 Fibonacci extension level, with primary support identified at 100.60. Keep an eye on price action around these levels.