Talking Points:
- UK jobless claims unlikely to inspire strong British Pound response
- Yen sinks, commodity Dollars rise as S&P 500 futures trade higher
- Looming US data may limit follow-through on overnight momentum
UK jobless claims data headlines an otherwise quiet economic calendar in European trading hours. A small increase is expected, but the outcome seems unlikely to generate lasting follow-through from the British Pound considering its limited impact on the direction of near-term BOE monetary policy.
The Japanese Yen underperformed in overnight trade, with prices mirroring a rebound in S&P 500 futures and hinting at recovering risk appetite as the catalyst at work. Tellingly, the sentiment-linked Australian, Canadian and New Zealand Dollars proved to be best-supported.
A lull in high-profile event risk offers relatively few barriers to disrupt established momentum, hinting that overnight moves may carry forward in the hours ahead. The degree of follow-through may ultimately prove limited however as traders look ahead to top-tier US data on the horizon.
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Asia Session
| GMT | CCY | EVENT | ACT | EXP | PREV |
|---|---|---|---|---|---|
| 21:30 | NZD | REINZ House Sales (YoY) (AUG) | -3.1% | - | -10.1% |
| 22:45 | NZD | BoP Current Account Balance (2Q) | -0.945b | -0.295b | 1.184b |
| 22:45 | NZD | Current Account GDP Ratio YTD (2Q) | -2.9% | -2.6% | -3.1% |
| 00:30 | AUD | Westpac Consumer Conf Index (SEP) | 101.4 | - | 101 |
| 00:30 | AUD | Westpac Consumer Conf SA (MoM) (SEP) | 0.3% | - | 2.0% |
| 02:00 | JPY | Tokyo Condominium Sales (YoY) (AUG) | -24.7 | - | -30.7% |
| 04:30 | JPY | Industrial Production (MoM) (JUL F) | -0.4% | - | 0.0% |
| 04:30 | JPY | Industrial Production (YoY) (JUL F) | -4.2% | - | -3.8% |
| 04:30 | JPY | Capacity Utilization (MoM) (JUL) | 0.6% | - | 1.5% |
European Session
| GMT | CCY | EVENT | EXP | PREV | IMPACT | |
|---|---|---|---|---|---|---|
| 08:30 | GBP | Claimant Count Rate (AUG) | 2.2% | 2.2% | Medium | |
| 08:30 | GBP | Jobless Claims Change (AUG) | 1.8k | -8.6k | Medium | |
| 08:30 | GBP | Average Weekly Earnings (3M/YoY) (JUL) | 2.1% | 2.4% | Low | |
| 08:30 | GBP | Weekly Earnings ex Bonus (3M/YoY) (JUL) | 2.2% | 2.3% | Low | |
| 08:30 | GBP | ILO Unemployment Rate (3Mths) (JUL) | 4.9% | 4.9% | Low | |
| 08:30 | GBP | Employment Change (3M/3M) (JUL) | 171k | 172k | Low | |
| 09:00 | EUR | Eurozone Industrial Production (MoM) (JUL) | -1.0% | 0.6% | Medium | |
| 09:00 | EUR | Eurozone Industrial Production (YoY) (JUL) | -0.8% | 0.4% | Medium | |
| 09:00 | CHF | Credit Suisse ZEW Survey Expectations (SEP) | - | -2.8 | Low |
Critical Levels
| CCY | Supp 3 | Supp 2 | Supp 1 | Pivot Point | Res 1 | Res 2 | Res 3 |
|---|---|---|---|---|---|---|---|
| EUR/USD | 1.1116 | 1.1172 | 1.1196 | 1.1228 | 1.1252 | 1.1284 | 1.1340 |
| GBP/USD | 1.2888 | 1.3061 | 1.3127 | 1.3234 | 1.3300 | 1.3407 | 1.3580 |
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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