Analysis and Recommendations: Copper added 3 points to trade at 2.353 moving off a six year low as fears over China’s currency policies eased and markets
Copper added 3 points to trade at 2.353 moving off a six year low as fears over China’s currency policies eased and markets began to return to normal. Palladium dipped $7.40 to 615.70 as the greenback regained its strength. Beijing’s surprise devaluation of its currency earlier this week rattled global markets, sending stocks, metals and Asian currencies sharply lower. opper rose for a second session on Thursday as expectations of no further devaluation of Chinese yuan pressured the dollar and buoyed hopes of demand revival in the world’s biggest importer.
China’s central bank has stepped up intervention in yuan trading, ordering state banks to buy yuan at designated rates on behalf of the monetary authorities, among other emergency measures, banking sources with direct knowledge of the matter told Reuters on Thursday.
The shift in policy caused investors to raise questions about the health of the world’s second-largest economy and threatens to dent the competitiveness of countries that compete with China in the global exports market.
The Chinese yuan has lost more than 3% against the U.S. dollar since the central bank said Tuesday it would allow markets greater input in setting the value of the currency.
The onshore yuan fell again Thursday, but the moves have been more gradual since the People’s Bank of China intervened late Wednesday to support the currency after sharp declines.
FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more recent analysis and information in our weekly reports.
Today’s economic releases:
Cur. |
Event |
Actual |
Forecast |
Previous |
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NZD |
Business NZ PMI (Jul) |
53.5 |
|
55.2 |
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GBP |
RICS House Price Balance (Jul) |
44% |
42% |
40% |
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AUD |
RBA Assist Gov Kent Speaks |
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EUR |
German CPI (MoM) (Jul) |
0.2% |
0.2% |
0.2% |
|
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EUR |
Spanish CPI (YoY) (Jul) |
0.1% |
0.1% |
0.1% |
|
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EUR |
Spanish HICP (YoY) (Jul) |
0.0% |
-0.1% |
-0.1% |
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CHF |
PPI (MoM) (Jul) |
-0.3% |
-0.2% |
-0.1% |
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EUR |
Account of Monetary Policy Meeting |
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Upcoming Economic Events that you should be monitoring:
Friday, August 14, 2015
Cur. |
Event |
Actual |
Forecast |
Previous |
|||
NZD |
Core Retail Sales (QoQ) |
|
0.7% |
2.9% |
|
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EUR |
German GDP (QoQ) (Q2) |
|
0.5% |
0.3% |
|
||
EUR |
Core CPI (YoY) (Jul) |
|
1.0% |
1.0% |
|
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EUR |
CPI (MoM) (Jul) |
|
-0.6% |
0.0% |
|
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EUR |
GDP (QoQ) (Q2) |
|
0.4% |
0.4% |
|
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USD |
PPI (MoM) (Jul) |
|
0.1% |
0.4% |
|
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CAD |
Manufacturing Sales (MoM) (Jun) |
|
2.1% |
0.1% |
|
||
USD |
Industrial Production (MoM) (Jul) |
|
0.3% |
0.3% |
|
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USD |
Michigan Consumer Sentiment (Aug) |
|
93.5 |
93.1 |
Government Bond Auctions
Date Time Country
Aug 13 11:10 Italy Auctions BTPs/CCTeus
Aug 19 11:30 Germany Eur 5bn Sep 2017 Schatz
Aug 19 11:03 Sweden Holds bond auction
Aug 20 10:30 Spain Auctions Bonos/Obligaciones
Aug 20 11:30 UK Auctions 4.25% 2036 Gilt
Aug 21 17:30 Italy Announces details of CTZ/BTPei on 26 Aug