FINWIRES · TerminalLIVE
FINWIRES

US Dollar Rises Early Wednesday Ahead of GDP, Personal Income, Durable Goods

By

The US dollar rose against its major trading partners early Wednesday, except for a decline versus the yen, to begin another busy day of data releases, starting with the second estimate of Q2 GDP and July data on personal income, spending, prices, and new orders for durable goods.

Weekly crude oil stocks data are due to be released at 10:30 am ET, followed by an update to the Atlanta Federal Reserve's GDP nowcast estimate for Q3 around midday and an appearance by Richmond Fed President Tom Barkin at 11:45 am ET.

Earlier Wednesday, the Mortgage Bankers Association reported that mortgage applications declined in the week ended Aug. 21 due to a slight uptick in average 30-year mortgage rates.

A quick summary of foreign exchange activity heading into Wednesday:

EUR/USD fell to 1.1662 from 1.1678 at the Tuesday US close and 1.1663 at the same time Tuesday morning. There are no Eurozone data on Wednesday's schedule. The next European Central Bank meeting is scheduled for Sept. 10.

GBP/USD fell to 1.3623 from 1.3653 at the Tuesday US close and 1.3630 at the same time Tuesday morning. UK service sector conditions declined in April, according to data released earlier Wednesday. The next Bank of England meeting is scheduled for Sept. 17.

USD/JPY fell to 159.1002 from 159.1472 at the Tuesday US close and 159.3114 at the same time Tuesday morning. There were no Japanese data released overnight. The next Bank of Japan meeting is scheduled for Sept. 17-18.

USD/CAD rose to 1.3870 from 1.3832 at the Tuesday US close and 1.3857 at the same time Tuesday morning. There are no Canadian data on Wednesday's schedule. The next Bank of Canada meeting is scheduled for Sept. 2.

Related Articles

International

Market Chatter: Car Production in Thailand Rises 6.12% in July, Lifted by Electric Vehicles

Automotive production in Thailand rose 6.12% in July to 117,383 units, driven by the production of electric passenger cars, which shot up 271% to 13,422 units, media reports said on Tuesday, quoting data from the Federation ​of Thai Industries.The growth in July follows a year-on-year fall of 7.55% in June.Domestic car sales ​rose 20.07% in July compared to a growth of 17.3% in ⁠June, while exports in July grew 2.4% from a drop of ​7.45% seen in the preceding month, according to the FTI.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

^SET
International

New Zealand New Residential Mortgage Lending Falls in July

Total new residential mortgage lending in New Zealand fell to NZ$7.85 billion in July from NZ$8.45 billion in June, according to data from the Reserve Bank of New Zealand released on Wednesday.Residential mortgage lending to first home buyers fell to NZ$1.58 billion in July from NZ$1.6 billion in the previous month. Lending to other owner-occupiers decreased to NZ$4.68 billion from NZ$5.1 billion.Residential mortgage lending to investors fell to NZ$1.48 billion from NZ$1.65 billion, while that for business purposes increased to NZ$109 million from NZ$95 million.Total new residential lending at a loan-to-valuation ratio above 80% came in at NZ$1.26 billion in July for all borrower types, down from NZ$1.27 billion in June.Residential mortgage lending, where the loan-to-valuation ratio is equal to or below 80%, was NZ$6.59 billion for all borrower types, down from NZ$7.18 billion in the previous month.

^NZ50
International

Westpac-Melbourne Institute Leading Index Rises in July

The six-month annualized growth rate in the Westpac-Melbourne Institute Leading Index rose to negative 0.2% in July from negative 0.4% in June, showing that the momentum is running below trend but is not particularly weak, according to a report released Wednesday.The index indicates the expected pace of economic activity in comparison to the trend for the next three to nine months.The July update is the seventh consecutive below-trend read on the leading index growth rate, but momentum has slightly improved since mid-year, said Matthew Hassan, Westpac's Head of Australian Macro-forecasting.Gross domestic product growth is expected to remain positive in the upcoming quarters, although per capita growth may run close to flat.The sub-trend leading index growth signal is mainly driven by financial conditions and the labor market, while other components show mixed contributions, he said.The Reserve Bank is anticipated to leave the cash rate unchanged, but it is prepared to lift again if high inflation is showing signs of persistence, Hassan added.

ASX 200