Today the focus is on central bank decisions, British momentum, & labor shortages.
The German IFO Business Climate Index for September will be released. Forecast: 98.9. If the results are lower than expected the EUR could see negative pressure.
Assets to trade: DAX, EUR/CAD, EUR/GBP
The US New Home Sales data for August. Forecast: 714K. If the data is higher than expected, the USD could receive a positive push.
Assets to trade: USD/NOK, USD/SGD, GBP/USD
Eurozone business growth was much weaker than expected this month as curbs to limit the Delta variant of coronavirus hit demand and already worsened supply-chain constraints pushed input cost rises to an over two-decade high, a survey showed. Affects EUR
Norway’s central bank raised its benchmark interest rate on Thursday and said it expects to hike again in December, as it joins a short but growing list of nations moving away from emergency-level borrowing costs. Affects NOK
Britain’s economy lost more momentum this month as businesses grappled again with rising costs, a survey showed, highlighting the difficult backdrop for Bank of England officials ahead of Thursday’s interest rate decision. Affects GBP
The Federal Reserve said on Wednesday it will likely begin reducing its monthly bond purchases as soon as November and signaled interest rate increases may follow more quickly than expected as the U.S. central bank’s turn from pandemic crisis policies gains momentum. Affects USD
Nearly four in five electronics manufacturers say that it has become harder to find qualified workers, compounding problems from an ongoing chip shortage and causing delays in shipping products, a trade group representing them said on Thursday. Affects S&P 500
Chip shortages and general supply chaos could continue to impact large swaths of companies and industries as labor shortages mesh with overall hard-to-source materials. From automakers to cameras the crunch could come for many modern products.
The index has reflected off of its support level showing a Bullish Engulfing which could turn into a Three Outside Up indicating a reversal that may lose steam.
The British index has shown a Three Outside Up pattern indicating an uptrend, but it is heading toward a potentially strong resistance zone.
The French index has shown a Three Outside Up pattern indicating an uptrend, but it is heading toward a potentially strong resistance zone.