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US producer prices highest in a decade

Commodities tend to zig when the equity markets zag. – Jim Rogers

 

 

HEADLINES

 

 

  • Dollar rises after U.S. producer prices surge
  • Mexico: Banxico hikes benchmark interest rate by 25 basis points to 4.5%
  • Gold holds above $1,750 as early Fed taper talk ebbs
  • S&P 500, Dow Keep Record Run Going on Apple-Led Gains in Tech
  • Disney beats expectations across the board, with U.S. parks returning to profit
  • Bitcoin Slides as US Lawmakers Wrangle Over Crypto Tax Proposal

 

 

FOREX

 

 

Dollar rises after U.S. producer prices surge

 

The U.S. dollar advanced against a basket of currencies on Thursday, after data showed producer prices posted their largest annual increase in more than a decade in the 12 months through July, suggesting inflation pressures remain strong.

 

 

Mexico: Banxico hikes benchmark interest rate by 25 basis points to 4.5%

 

 

"The recovery of the Mexican economy continued during the second quarter and is expected to endure for the rest of the year, while risks related to the growing number of infections persist."

"The balance of risks for the trajectory of inflation within the forecast horizon is biased to the upside."

 

 

COMMODITIES

 

 

Gold holds above $1,750 as early Fed taper talk ebbs

 

Gold prices held slightly above the key $1,750 mark on Thursday as expectations of an early taper of the Federal Reserve’s asset purchases eased, offsetting a firmer dollar and yields. The dollar took away some of gold’s shine, steadying close to more than a four-month peak while benchmark U.S. 10-year Treasury yields rebounded on Thursday.

 

 

STOCKS

 

 

S&P 500, Dow Keep Record Run Going on Apple-Led Gains in Tech

 

The S&P 500 and Dow continued their streak of record closing highs Thursday, led by a gains in health care and technology just as cyclicals took a breather from their recent melt up. An Apple-led climbs in megacap tech stocks helped keep the overall tech sector trending above the flatline following pressure from Intel and Micron.

Disney beats expectations across the board, with U.S. parks returning to profit

Disney reported blowout fiscal third-quarter earnings after the bell Thursday, beating Wall Street expectations on subscriber growth, revenue and earnings. The company beat on subscriber estimates for Disney+, coming in at 116 million. StreetAccount estimated the company to report 114.5 million subscribers in its third quarter. The segment had 103.6 million in its fiscal second quarter. Shares were up more than 5%.

 

 

CRYPTO

 

 

Bitcoin Slides as US Lawmakers Wrangle Over Crypto Tax Proposal

 

Bitcoin (BTC) was lower for a third straight day, slipping toward $44,000 after the largest cryptocurrency by market value reached a three-month high of nearly $46,800 earlier this week. Developments on the regulatory front continued Thursday as U.S. Rep. Anna Eshoo (D-Calif.) asked House Speaker Nancy Pelosi (D-Calif.) to amend the crypto tax provision that was in the Senate’s infrastructure bill in an open letter.

 

 

ANALYSIS

 

 

USD/JPY to simmer a push towards the 111.70/112.20 zone – Westpac

 

“The big test for us will come late August and then late September. Does Powell lay out a pathway to taper at Jackson Hole Aug 26-28 and then follow up with a formal announcement Sep 21-22; and given this has become more of a consensus view, is this enough to lift the USD higher?”

“We still see a push towards 111.70/112.20. However, such a move requires further positive news to unfold e.g. infrastructure plans be approved and thus likely delayed until the fall.”

 

 

CHART

 

 

Nasdaq 100 index – Daily Candlesticks

Source: GKFX Prime Metatrader 4

NAS100 is trading just off record highs but a third higher high matched by a third lower higher in RSI shows bearish divergence and could be pre-empting the next bigger dip. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

SOURCE


https://www.fxstreet.com/economic-calendar
https://www.investing.com/news/stock-market-news/sp-500-dow-keep-record-run-going-on-appleled-gains-in-tech-2588619
https://www.cnbc.com/2021/08/12/disney-dis-fiscal-q3-2021-earnings.html
https://www.cnbc.com/2021/08/12/gold-markets-inflation-federal-reserve-tapering.html
https://www.coindesk.com/market-wrap-bitcoin-slides-as-us-lawmakers-wrangle-over-crypto-tax-proposal
https://www.fxstreet.com/news/mexico-banxico-hikes-benchmark-interest-rate-by-25-basis-points-to-45-202108121816

 

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