Morning Traders!
It is Tuesday the 1st of August, here are some things to look out for today.
Sentiment
Treasuries are little changed, outperforming gilts and bunds after manufacturing PMIs in the UK and France were revised higher and Germany's unemployment rate fell more than the median estimate.
The Dollar Index rises for the second day in a row, outperforming Group-of-10 peers, while the Australian dollar falls more than 1.3% against the dollar after the Reserve Bank unexpectedly maintains its key policy rate at 4.10%.
Money markets are holding Fed bets steady ahead of US ISM manufacturing data, pricing in 5.5bps of hikes in September and 10bps of tightening by November.
Although Federal Reserve Chair Jerome Powell has left the door open for another rate hike, Wall Street economists see signs pointing toward a pause ahead of the central bank's September meeting
Elsewhere, Canadian Prime Minister Trudeau blamed high interest rates and inaction by other levels of government for skyrocketing housing costs, signaling a more defensive tone on an issue where his main political rival has hit him hard.
Docket
9:30 AM ET
Canadian S&P Manufacturing PMI for July
Prior: 48.8
9:45 AM ET
US S&P Manufacturing PMI July Final
Median Forecast:49 | Prior: 49 | Range: 49 / 47
10:00 AM ET
US ISM Manufacturing PMI for July
Median Forecast: 46.9 | Prior: 46 | Range: 48.5 / 45.6
US JOLTs Job Openings for June
Median Forecast: 9.6M | Prior: 9.824M | Range: 9.784M / 9.5M
For a breakdown of what these releases represent, and how they could potentially affect the markets, CLICK HERE
Speakers
10:00 AM ET
Fed's Goolsbee gives welcoming remarks at a Chicago Fed event.
Earnings
4:05 PM ET
Starbucks Q3 2023 Earnings
Est. EPS 95c
Est. Rev $9.28 bln
Good luck!
