Week Starts Slowly for the Dollar
August 10, 2020
Net dollar changes since the pre-weekend close have been insignificant against other major currencies.
Markets are closed today for holiday in Japan and Singapore.
Share prices are mostly firmer. So too are the prices of WTI oil (1.5%) and gold (0.7%).
But ten-year sovereign debt yields are down two basis points in Germany and the U.K. and by a basis point in the United States.
After U.S. congressional negotiations failed to compromise on a fiscal stimulus package, President Trump took four executive actions. These steps have created confusion as to their legality, how their intent can logistically be accomplished, and whether they would provide meaningful relief to the U.S. economy.
Euroland’s Sentix gauge of investor confidence improved 4.8 points to a reading of -13.4 in August. That’s the sixth straight negative score but the best outcome within that streak.
Chinese producer price deflation receded 0.6 percentage points to -2.4% in July, the least negative since March. Consumer prices rose 0.6% on month, their first rise since February and resulting in a 3-month on-year high of 2.7%.
Norwegian CPI inflation edged down 0.1 percentage point to 1.3% in July, a 2-month low. PPI deflation of -13.3% was the least negative since April.
Ireland’s construction purchasing managers index rose 1.3 index points to an 11-month high of 53.2 in July. Such bottomed in April at 4.5.
Turkish unemployment rose 0.1 percentage point to 12.9% in May, while Swiss unemployment stayed level at 3.2% in July.
Denmark recorded a DKK 15.072 billion current account surplus in June, a tad less than DKK 16.2 billion a year earlier.
Swedish household consumption grew for a second straight month. The rises of 2.0% in May and 2.9% in June followed a combined 12.1% drop in March-April.
Finnish industrial production in June was 6.9% lower than a year earlier, its greatest 12-month drop since end-2012.
New Zealand business confidence weakened in August following some improvement in July.
Copyright 2020, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Chinese CPI and PPI
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