All attentions turn to BoE’s Carney Speech

U.S. dollar declined vs. a basket of currencies, as the ISM Non-Manufacturing PMI index fell 4.1 to 51.4 in August vs. 55.5 in July, well below market expectations of 55. The U.S. dollar index fell as much as 1% yesterday and traded at 94.80, negatively affected by such data.

Gold jumped to $1,350, thanks to weak U.S. data. Technically, as the yellow metal traded above the key resistance level of $1,330 which could be support during the next period in anticipation of the Fed meeting this month.

The Pound settled above $1.34, positively affected by weak U.S. data. On the other hand, Cable is awaiting the inflation report from the BoE, which will be released today.

On Tuesday, the European Union's statistics office showed that the strong household demand and exports drove euro-zone Q2 growth, but growth slowed from previous quarters on weakening inventories and investment. Euro traded above $1.12 vs. USD and could hit a key resistance of $1.1270.

USD pared most of last week's gains vs. JPY and re-tested ¥102.

Oil prices fluctuated sharply on Russian and Saudi plans and amid concerns over global supply glut. U.S. crude traded between $46 and $45 during yesterday's trading session. Technically, U.S. crude could decline further and trade under pressure.

The most important economic events:

  • CAD Bank of Canada Rate Decision (SEP 7): (GMT 16:00) - Important – Forecast (0.50%) – Previous (0.50%).
  • USD MBA Mortgage Applications (SEP 2): (GMT 13:00)
  • GBP NIESR Gross Domestic Product Estimate (AUG): (GMT 16:00) - Important – Forecast (N/A) – Previous (0.3%).

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