August 30: Asian session
On Thursday the US dollar rocketed versus the euro, yen, Swiss franc and Canadian dollar as strong US data had increased the probability of QE tapering in September. Preliminary US Q2 GDP was revised up to 2.5% (vs. advance 2.2% and 1.7% in Q1). Jobless claims have also improved from a week earlier. As a result, the US and European stock markets closed in the green territory. Today the US will release a block of a slightly less important statistics, which still is expected to impact the markets.
EUR/USD is consolidating in the $1.3230/50 range on Friday following the yesterday’s drop from $1.3340 (by more than 100 pips). Germany will publish retail sales data at 6:00 GMT (growth is forecasted). We’ll also watch the Italian unemployment rate at 8:00 GMT (growth is expected) and the regional CPI and unemployment rate at 9:00 GMT.
GBP/USD traded in the negative zone yesterday for a third straight day, but held above the Thursday’s low of $1.5430. Today cable is trading a bit higher, climbing above the $1.5500 mark. USD/CAD rose to 1.0540 on the US data, reaching a weekly high. Canada will release June GDP at 12:30 GMT. The economy is forecasted to contract at a highest pace since 2009 (forecast: -0.4%, prior: 0.2%). USD/CHF jumped above 0.9300.
USD/JPY is trading under a slight pressure in the 98.10/50 range after two days of confident growth. Tonight data showed Japan core CPI rose by 0.7% in July from a year earlier, marking the second straight month of gains and hitting a five year high. Japan industrial production rose by 3.2% in July (below the 3.9% forecast, but much better than a month before).
AUD/USD is trading in a consolidation mode, holding above the $0.8900 mark. NZD/USD strengthened to $0.7780.