DailyFX.com -

Talking Points:

  • Japanese Yen Rebounds as Nikkei 225 Decline Boosts Safe-Haven Demand
  • US Dollar Eyeing Durable Goods, Consumer Confidence Data to Fuel Gains
  • See Economic Releases Directly on Your Charts with the DailyFX News App

The Japanese Yen outperformed, rising as much as 0.2 percent on average against its leading counterparts. The move lower tracked a drop in the benchmark Nikkei 225 stock index, hinting risk aversion bolstered demand for the safety-linked currency. The US Dollar corrected slightly lower in overnight trade after setting another six-month high yesterday in the wake of supportive remarks from Fed Chair Janet Yellen at the Jackson Hole Economic Symposium last week.

Looking ahead, a quiet economic calendar in European hours is likely to keep US monetary policy considerations in focus. The central issue on this front remains the expected time gap between October’s end of “QE3” asset purchases and the first subsequent interest rate hike. Near-term speculation will be informed by July’s Durable Goods Orders reading and Augusts’ Consumer Confidence gauge. The former report is expected to show an 8 percent gain, marking the largest increase in over three years. The latter is forecast to reveal a slight downtick in sentiment after the index hit a seven-year high in the prior month.

Yesterday’s soft New Home Sales figures notwithstanding, the overall trend in US economic news-flow has markedly improved since early April. Indeed, a Citigroup index measuring realized outcomes relative to consensus forecasts reflects the best performance in over six months. This hints that analysts are broadly underestimating the vigor of the US economy, opening the door for upside surprises that continue to propel the greenback upward.

New to FX? START HERE!

Asia Session

GMT

CCY

EVENT

ACT

EXP

PREV

22:45

NZD

Trade Balance (NZ$) (JUL)

-692M

-475M

242M

22:45

NZD

Trade Balance YTD (NZ$) (JUL)

1287M

1490M

1191M

22:45

NZD

Imports (NZ$) (JUL)

4.40B

4.48B

3.94B

22:45

NZD

Exports (NZ$) (JUL)

3.70B

3.98B

4.18B

23:30

AUD

ANZ Roy Morgan Consumer Conf. (Weekly)

113.5

-

112.5

23:50

JPY

PPI Services (YoY) (JUL)

3.7%

3.7%

3.7%

2:00

CNY

Conference Board Leading Index (JUL)

297.7

-

294

5:00

JPY

Small Business Confidence

49.5

48.7

European Session

GMT

CCY

EVENT

EXP

PREV

IMPACT

8:30

GBP

BBA Loans for House Purchase (JUL)

44065

43265

Low

Critical Levels

CCY

Supp 3

Supp 2

Supp 1

Pivot Point

Res 1

Res 2

Res 3

EURUSD

1.3127

1.3163

1.3177

1.3199

1.3213

1.3235

1.3271

GBPUSD

1.6365

1.6462

1.6520

1.6559

1.6617

1.6656

1.6753

Related Articles
  1. Economics

    India: Why it Might Pay to Be Bullish Right Now

    Many investors are bullish on India for all the right reasons. Does it present an investing opportunity?
  2. Investing Basics

    Building My Portfolio with BlackRock ETFs and Mutual Funds (ITOT, IXUS)

    Find out how to construct the ideal investment portfolio utilizing BlackRock's tools, resources and its popular low-cost exchange-traded funds (ETFs).
  3. Investing

    3 Things About International Investing and Currency

    As world monetary policy continues to diverge rocking bottom on interest rates while the Fed raises them, expect currencies to continue their bumpy ride.
  4. Chart Advisor

    These 3 ETFs Suggest Commodities Are Headed Lower (COMT,CCX,DBC)

    The charts of these three exchange traded funds suggest that commodities are stuck in a downtrend and it doesn't look like it will reverse any time soon.
  5. Trading Strategies

    4 ETFs To Trade the Russian Ruble (RSX, ERUS)

    Discover which exchange-traded funds (ETFs) provide investors with the greatest exposure to the Russian ruble and learn about the risks that come with each.
  6. Chart Advisor

    3 Charts That Suggest Now Is The Time To Invest In Real Estate (VNQ, SPG,PSA)

    Real estate assets have some of the strongest uptrends around. We'll take a look at three candidates poised for a move higher.
  7. Products and Investments

    Are Dividend Stocks a Good Substitute for Bonds?

    Are dividend paying stocks a good substitute for bonds in a low interest rate environment?
  8. Mutual Funds & ETFs

    When Is the Right Time to Change From Mutual Funds to ETFs

    Find out how to determine when it's the right time for you to switch from mutual funds to ETFs, including the benefits of ETFs and who they are best for.
  9. Investing Basics

    An Introduction To Structured Products

    Structured products take a traditional security and replace its usual payment features with a non-traditional payoff.
  10. Investing Basics

    Understanding Alternative Investments

    An alternative investment is one that’s not among the three traditional asset types – stocks, bonds or cash.
RELATED FAQS
  1. Should mutual funds be subject to more regulation?

    Mutual funds, when compared to other types of pooled investments such as hedge funds, have very strict regulations. In fact, ... Read Full Answer >>
  2. Do ETFs pay capital gains?

    Exchange-traded funds (ETFs) can generate capital gains that are transferred to shareholders, typically once a year, triggering ... Read Full Answer >>
  3. How do real estate hedge funds work?

    A hedge fund is a type of investment vehicle and business structure that aggregates capital from multiple investors and invests ... Read Full Answer >>
  4. Are Vanguard ETFs commission-free?

    While some Vanguard exchange-traded funds (ETFs) are available commission-free from third-party brokers, a large portion ... Read Full Answer >>
  5. Do Vanguard ETFs require a minimum investment?

    Vanguard completely waives any U.S. dollar minimum amounts to buy its exchange-traded funds (ETFs), and the minimum ETF investment ... Read Full Answer >>
  6. Can mutual fund expense ratios be negative?

    Mutual fund expense ratios cannot be negative. An expense ratio is the sum total of all fees charged by an asset management ... Read Full Answer >>
COMPANIES IN THIS ARTICLE
Trading Center