Daily Update - 7th September 2017
The Australia’s economy rebounded last quarter expanding by 0.8% in the Q2, up from 0.3% percent in the Q1. Despite the surge in economic growth, there is little signs of rising inflation generating spare capacity in the labor market which has allowed the Reserve Bank of Australia to leave interest rates unchanged and at record lows. The futures markets project no change in rates for the balance of 2017 and a 50% chance of a 25-basis point increase by June 2018. In a report, the Institute of Supply Management (ISM) said its non-manufacturing purchasing manager's index (PMI) increased to 55.3 in August from the prior month's reading of 53.9. Analysts had expected the index to rise a bit higher to 55.4 last month. Amid another day of pressure on the US dollar, the big currency mover on Wednesday was clearly the Canadian dollar, and for good reason. The Bank of Canada (BoC), in a surprisingly early policy move, raised its key overnight rate by 25 basis points to 1%, which follows consecutively from the previous BoC rate hike at its last meeting in July. Looking at economic reports and data Thursday is going to be the day of ECB, there is a lot more expectation ECB’s head this week for EUR appreciation, the day would be started with Eurozone GDP reports with ECB deposit rate decision and Interest rate decision, that could show some volatility in Eurozone later on in the afternoon US will be releasing its continuing Jobless claims, Initial Jobless claims, unit labor costs and Nonfarm productivity which are middle major reports to boost USD, same time ECB monetary policy meeting and press conference will be there to make some great movement. Yesterday’s Focus
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