Morning Juice – Europe Session Prep

Good Morning Traders
It is Wednesday the 21st August, here is what to expect for the day.

Sentiment

US employment growth in the year through March was likely significantly less robust than initially predicted, raising concerns that the Federal Reserve is sliding farther behind the curve to decrease interest rates.

For the first time in almost a year, China’s central bank set its daily reference rate for the yuan substantially in line with forecasts, indicating a weakening of its tight hold on the regulated currency. Japan’s exports increased quicker in July, reflecting the yen’s collapse to a 38-year low previous month.

The Bank of Japan released two research papers demonstrating the continuation of inflationary pressure in the economy, indicating that there is still a case to be made for another interest rate hike.

A famous economist has cautioned that if a scenario similar to the unwinding of the yen carry trade plays out, the Chinese yuan may surge, causing further instability in markets.

Five of the main emerging Asian bond markets are collectively enjoying net inflows for the first time in three years, indicating investors are becoming more optimistic about the asset class.

Secretary of State Antony Blinken left the Middle East late Tuesday after failing to reach a deal to end bloodshed between Hamas and Israel, underscoring how the two sides remain sharply opposed, despite US officials’ insistence that an agreement is close.

Docket

02:00 ET
UK Public Sector Net Borrowing
Median Forecast 0.35B | Prior 13.6B

06:30 ET
Target’s Q2 2024 Earnings
Est. EPS $2.21 | Est. Rev. $24.89B

Speakers

07:00 ET
ECB’s Panetta Speaks

Good luck!