PA Market Report: Overview (August 1 – August 5) & Upcoming Events August’2022

August 1, 2022

S&P Global Eurozone Manufacturing PMI® (EUR) 

The eurozone manufacturing sector fell deeper into contraction at the start of the third quarter, with July PMI® data signalling the sharpest decline in production since the initial wave of strict COVID-19 lockdowns in May 2020. The downturn strengthened amid a reduction in new orders which, aside from those seen during the pandemic restrictions, was the sharpest since the eurozone sovereign debt crisis in 2012 as steep inflation squeezed demand.

Manufacturing PMI® (USD)

The nation’s supply executives say in the latest Manufacturing ISM® Report On Business® that economic activity in the manufacturing sector grew in July, with the overall economy achieving a 26th consecutive month of growth.

August 2, 2022

Japanese Finance Minister Suzuki Frets About Hectic Yen Swings (JPY)

  • Recent Yen Moves Rapid, Important For FX Rates To Move Stably Reflecting Fundamentals
  • We will continue to advocate for a minimum wage of at least 1,000 yen.
  • Carefully watching FX moves and impact on the economy while working with BOJ

Monetary Policy Decision (AUD)

At its meeting today, the Board decided to increase the cash rate target by 50 basis points to 1.85 percent. It also increased the interest rate on Exchange Settlement balances by 50 basis points to 1.75 per cent.

US Won’t Abandon Taiwan (USD)

House Speaker Nancy Pelosi pledged that the US wouldn’t abandon Taiwan, reaffirming US support for the democratically elected government in Taipei despite fresh threats of military action by Beijing. 

August 3, 2022

Japanese Yen Outlook (JPY)

The IGCS gauge shows that about 44% of retail traders are net-long USD/JPY. Since most traders are still biased lower, this hints prices may continue rising. However, upside exposure has climbed by 9.99% and 22.38% compared to yesterday and last week respectively. With that in mind, recent changes in exposure hint that recent losses in USD/JPY could extend in the sessions ahead.

USD/JPY Rebounds (All)

USD/JPY appears to be reversing ahead of the June low (128.60) as it attempts to halt a four-day decline, and the exchange rate may stage a larger advance over the coming days as the Relative Strength Index (RSI) holds above oversold territory.

August 4, 2022

Monetary Policy Report (GBP)

The Bank of England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target and in a way that helps to sustain growth and employment. At its meeting ending on August 3, 2022, the MPC voted by a majority of 8-1 to increase the bank rate by 0.5 percentage points, to 1.75%. One member preferred to increase the Bank Rate by 0.25% points, to 1.5%.

August 5, 2022

Stability in the Taiwan Strait (All)

Prime Minister Fumio Kishida and U.S. House of Representatives Speaker Nancy Pelosi agreed Friday to jointly work to ensure peace and stability in the Taiwan Strait, after her visit to the self-ruled island prompted an angry China to respond with military drills, spiking regional tensions.

Employment Situation News Release (USD)

The U.S. Bureau of Labour Statistics reported today that total nonfarm payroll employment rose by 528,000 in July, and the unemployment rate edged down to 3.5%. Job growth was widespread, led by gains in leisure and hospitality, professional and business services, and health care. Both total nonfarm employment and the unemployment rate have returned to their February 2020 pre-pandemic levels.

Upcoming Events

Aug 8, 2022

Inflation Expectations q/q(NZD)

Aug 10, 2022

Core CPI m/m (USD)

Crude Oil Inventories (USD)

Aug 11, 2022

PPI m/m (USD)

Aug 12, 2022

Prelim UoM Consumer Sentiment (USD)

Prelim GDP q/q (GBP)

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