GERMAN GDP, US DURABLE GOODS ORDERS IN THE SPOTLIGHT
Economic data is back in the spotlight on Friday, with high-profile reports from Germany and the United States set to make headlines. In monetary policy, the Kansas City Fed’s annual Jackson Hole Symposium will continue Friday with Jerome Powell set to deliver a speech.
Germany kicks off the economic calendar at 06:00 GMT with revised second-quarter GDP. Europe’s largest economy is forecast to have grown 0.5% in the second quarter, unchanged from the revised estimate. In annualized terms, that translates into 2.3% growth.
At 08:30 GMT, the British Bankers Association (BBA) will report on mortgage approvals for the month of July. Approvals are projected to rise 40,600 month-on-month.
Shifting gears to North America, the US Department of Labor will report on durable goods orders at 12:30 GMT. According to analysts, orders for manufactured goods meant to last three years or more are projected to fall 0.5% in July after rising 0.8% the month before. Excluding the volatile transportation category, durable goods orders are projected to grow 0.5% following a 0.2% increase during the previous month.
Federal Reserve Chairman Jerome Powell will deliver a speech at the Jackson Hole Symposium at 14:00 GMT. The Fed is widely expected to raise interest rates at next month’s meeting, according to the most recent FOMC meeting minutes.
The September rate verdict will be accompanied by a revised summary of economic projections covering GDP, unemployment and inflation.
Europe’s common currency was back on the defensive Thursday after prices reached their highest level in two weeks. The EUR/USD exchange rate now sits at 1.1545, down sharply from Wednesday’s high above 1.1620. From a technical point of view, the pair faces strong resistance at 1.1665. On the opposite side of the ledger, the pair is testing immediate support at 1.1540. A break below this level exposes further losses below 1.1500.
Like the euro, the British pound backed off its recent swing high against the dollar on Thursday. Cable now sits just above 1.2800 after peaking at 1.2929 during the previous session. The technical levels show immediate support at 1.2800 after the pair fell below the 1.2835 region. Below 1.2800, the next zone of support is located at 1.2765. On the opposite side of the ledger, immediate resistance is located at 1.2900.
The dollar-yen exchange rate strengthened on Thursday, as the greenback regained its footing after a difficult week. USD/JPY now sits at 111.41, the highest in nearly three weeks. In terms of technical levels, the pair is now targeting the 111.81 region, which is the closing high from 3 August. On the opposite side of the ledger, immediate support is located near 111.00.