USD

After rallying by as much as 0.4% yesterday, the Dollar Index reversed course and closed in the red due to the latest S&P Global US PMIs, which boosted bets that the Fed would maintain steady rates at their next meeting in September. Today, the Greenback is up by over 0.4% thanks to a strong jobs report, as markets await the Jackson Hole Symposium later this morning.

US initial jobless claims unexpectedly fell to 230K, compared to the expected 240K. Simultaneously, continuing claims also decreased to 1.702M, indicating a resilient labor market despite the Fed's efforts to cool the economy.

On the other hand, new durable goods orders saw a sharp decline of 5.2%, marking the steepest drop since April 2020 and surpassing market expectations for a 4% decrease.

EUR

The Euro is down by over 0.3% this morning following yesterday's volatile session, during which EUR/USD rebounded from a two-month low and closed in positive territory.

On the data front, France's manufacturing climate indicator fell to 96 in August, marking the lowest level since January 2021. This decline can be attributed to decreases in past production and order books, as well as weaker expected selling prices. However, there was a significant drop in perceived economic uncertainty.

Looking ahead to tomorrow, Germany will release its final reading of Q2 GDP, which is expected to confirm that the economy stagnated on a quarterly basis while contracting by 0.2% from an annual perspective.

GBP

The British Pound is down by 0.6% today, still grappling with the impact of yesterday's dismal UK PMIs, which prompted traders to reduce their expectations for the number of additional BOE rate hikes in 2023. Nonetheless, market pricing indicates that another 0.25% rate increase is still anticipated for September.

Earlier today, the UK's CBI retail sales balance plummeted sharply to -44 in August, marking the lowest figure since March 2021. Meanwhile, despite a slight improvement in expectations for the upcoming month, retailer sentiment plunged to its lowest reading of the year at -14.

Later this evening, UK consumer confidence for August is scheduled for release and is expected to register at -0.29, aligning with the -0.30 reading from the previous month.

JPY

The Japanese Yen is down by over 0.7% for the day, following yesterday's 0.7% rally against the Dollar, which was triggered by soft US PMIs. JPY traders will be tuned in to the Jackson Hole event, commencing at 10:00 AM EST, to catch any hints about the future path of US interest rates. Simultaneously, it is less likely to provide new perspectives on Japan's monetary policy, given the BOJ's steadfast commitment to ultra-low rates.

Later this evening, the August Tokyo CPI report is scheduled for release at 7:30 PM EST and is expected to indicate a decline in headline inflation to 3% year-on-year for August, down from 3.2% in July.

CAD

After registering its first positive trading day against the Greenback since August 11th yesterday, the Loonie is retracing this morning as traders evaluate the latest set of US and Canadian data released today.

This morning's preliminary estimate from Statistics Canada indicates a 0.7% increase in total Canadian manufacturing sales for July, propelled by significant growth in the petroleum and coal product, food, and primary metal sectors. This estimate marks a substantial improvement from the 1.7% decline observed in June.

Meanwhile, as per today's market pricing, the weaker-than-anticipated retail sales report from yesterday has caused the likelihood of a September BOC rate hike to plummet to a mere 19%.

MXN

The Mexican Peso is down by over 0.3% today following the release of a fresh set of key data from both the US and Mexico. However, the MXN remains notably stronger against the Greenback for the week.

In the first half of August, consumer prices in Mexico increased by 0.32%, resulting in an annual inflation rate of 4.67%, the lowest since March 2021. Meanwhile, core inflation moderated to 6.21% year-on-year.

Looking ahead, Mexico's Q2 GDP data is scheduled for release tomorrow, with market forecasts indicating 0.9% growth for the quarter and 3.7% year-on-year, both roughly in line with the previous figures.

BRL

After delivering its most robust daily performance since mid-April and reaching a two-week high, the Brazilian Real has declined by over 0.4% at the start of the North American session.

In a significant development, Brazil's lower house of Congress approved new fiscal rules aimed at stabilizing the country's finances and addressing concerns regarding President Lula da Silva's spending plans. These rules grant the government the ability to gradually increase spending within specific limits, replacing the previous spending cap.

Meanwhile, BRICS announced its intention to expand its membership on January 1, 2024, to include Saudi Arabia, Iran, Ethiopia, Egypt, Argentina, and the United Arab Emirates. This expansion is part of an effort to enhance the group's global influence.

CNY

The Chinese Yuan is edging lower today after gaining 0.25% against the Dollar in the offshore market yesterday. This movement comes in response to market reactions concerning the latest US jobless claims and durable goods orders, along with the recent efforts made by the PBOC to support the Yuan.

According to comments from former PBOC director Sheng Songcheng, the PBOC has intensified its sale of CNY bills in the offshore market to reduce liquidity and discourage speculators from shorting the Yuan. Sheng noted that the central bank might further increase sales if pressure on the Yuan continues to mount.