| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 03:00 | New Zealand | Expected Annual Inflation 2y from now | Quarter III | 2.33% | 1.9% | 2.03% |
During today's Asian trading, the US dollar declined moderately against major currencies, while market participants are adjusting their positions ahead of the publication of US data.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) fell by 0.26% to 102.93, which is not far from the seven-month low (102.15) reached on Monday. As for the data, the initial jobless claims report will be presented today at 12:30 GMT. Economists expect that in the week to August 3, initial jobless claims fell to 240 thousand from 249 thousand a week earlier (an almost new yearly high). Meanwhile, next week the US will announce a change in the consumer price index for July. Investors' attention will also be focused on comments by Fed Chair Jerome Powell at the central bank's Jackson Hole Economic Policy Symposium on Aug. 22-24. Experts said that there is still another six weeks before the next Fed meeting and there is a lot of economic data on tap between now and then which could change the odds. According to the CME FedWatch Tool, markets see a 72.0% probability of a 0.5% rate cut in September, and a 53.6% probability of 0.25% rate cut in November. Overall, futures impose 105 basis points of cuts this year.
The yen rose 0.5% against the US dollar after falling 1.37% yesterday, while investors weigh the unwinding of popular carry trades and ponder the rate path Japan's central bank is likely to take. Yesterday, an influential official of the Bank of Japan, Deputy Governor of the Bank of Japan Shinichi Uchida, downplayed the likelihood of a rate hike in the near future, easing investors' fears that a further jump in the Japanese currency could shake global markets again. Meanwhile, the Bank of Japan summary of opinions showed that at the July meeting, some politicians advocated the need for further interest rate increases, and one of them said that they should eventually be increased to at least 1%. Overall, the contrasting opinions from the summary and Uchida highlight the sensitivity of the task facing the central bank and will likely keep investors skittish.