Markets settle ahead of the key PCE price index data
Yesterday’s increased volatility in markets has subsided somewhat this morning as traders await today’s key Personal Consumption Expenditures price index data. US Q2 GDP data was better-than-expected at 2.8% versus estimates of only 2.0% but the forward-looking durable goods orders number was down at -6.6% versus estimates of 0.3%, further cementing market bets of a September rate cut by the Fed. The Dollar is marginally softer at 1.0860 and 1.2870 against the Euro and Pound while the Yen is steady at 153.68. The Chinese Yuan firmed nearly 0.5% yesterday on rumors of intervention to support the currency by the PBoC. The Rand traded just above the 18.50 level yesterday as risk-sentiment remained on the negative side however, the local currency recovered later to close nearly flat on the day at 18.35. This morning we have the Rand sitting a touch firmer at 18.32 ahead of the PCE data.
Precious metals open firmer, oil trading unchanged
Gold, Platinum, and Palladium are all trading firmer this morning as they recover from yesterday’s losses. Gold is up 0.35% at $2,372, Platinum is up 0.65% at $942, and Palladium is up 0.9% at $917.00. Industrial metals have also stabilized and are showing marginal gains. Brent crude has opened flat at $82.50 this morning as it heads for a third week of losses on the back of lower Chinese demand and hopes of a ceasefire in the Middle East
