Trump winds down advisory council
Fundamental outlook US President Donald Trump closed the advisory council after leaders left one after another, especially after his biased comments on the supremacist rally in Charlottesville.
The eurozone’s gross domestic product (GDP) matched forecast at 0.6 per cent. Spain was affected by a terrorist attack claimed by Islamic State.
US housing permit grew 1.22 million while housing starts rose 1.16 million in July, both under consensus’ expectations. Jobless claims for the week ended August 12 was 232,000, lower than previous week’s 244,000.
US industrial production including utilities and mines gained 0.2 per cent in July and missed forecast. Capacity utility in July was steady at 76.7 per cent, in-line with forecast.
Following comments from President Trump on the rally in Charlot tesvi l le, more business leaders are leaving the council.
Trump announced on Wednesday that he would close the Manufacturing Council and the Strategy & Policy Forum.
China’s industrial production grew 6.4 per cent in July on a yearly basis, missing forecast. Fixed asset investment also rose 8.3 per cent, below expectation and the lowest in six months.
Japan’s prelim GDP for 2Q grew one per cent, below target. Revised manufacturing production rose 2.2 per cent in June, beating expectations.
German prelim GDP for 2Q rose 0.6 per cent but fell short of expectations, after a revised 1Q growth at 0.7 per cent. Flash GDP in the eurozone grew 0.6 per cent in 2Q ended June and matched forecast.
Final consumer prices among 19 nations in the eurozone grew 1.3 per cent on a yearly basis, matching forecast. Trade surplus charted its highest in three months at 22.3 billion euros.
A terrorist attack broke out in Barcelona on August 17 when a van rammed into a crowd in the city. At least 14 were killed and 130 injured. Islamic State has claimed responsibility for the act.
UK consumer prices rose 2.6 per cent in July on a yearly basis while producer prices input on monthly basis remained flat in July.
Retail price index gained 3.6 per cent in July on a yearly basis, matching forecast.
British average earnings on a three month-period ended June gained 2.1 per cent, better than the previous month. Claimants for jobless benefits declined 4,200 in July, beating expectations. Unemployment rate stayed healthy as it declined 4.4 per cent as of June. Technical forecast USdollar/Japaneseyenexhibited support at 108.80 to 109.00 last week. The trend might swing from 109 to 111 this week with mixed sentiments. However, beware of breaking beneath 108.80 which could drive down to 107.50 area.
Euro/US dollar consolidated in a tight range from 1.168 to 1.185 region. This week, we reckoned it could be a good opportunity to pick a short position from the pull-up pattern.
Risk control is advised in case of piercing above the 1.19 level. The market might be fall again in a week.
British pound/ US dollar is seen supported at 1.285 region, reaching the EMA200 line.
This week, we predict there could be sideways swing from 1.28 to 1.2950 range until the some updated news lead the market’s headway. The pound and dollar are both on a weakening trend which creates a taut effect in sentiments.
Disclaimer: This article is written for general information only. No liability by the writer, publisher or any third party involved in the distribution of this work. Dar Wong is a registered fund manager in Singapore with 27 years of global trading experiences. You may reach him at dar@ pwforex.com.