August 05, 2024 at 06:09AM
The big one to watch will be later in US trading, with the ISM services PMI for July coming up. With markets already reeling after the US jobs report last week, this might just exacerbate that sentiment further especially if we see a poor reading.
As for European trading today, it looks like emotions are still running high and the angst is continuing. Japan’s Nikkei is now down 9%(!) on the day and is down over 16% on the month already. If held, that would represent the largest monthly decline since the global financial crisis back in 2008.
Meanwhile, US futures are also still selling off heavily with tech shares bearing the brunt of it. S&P 500 futures are down 1.8% and Nasdaq futures down 3.8% currently.
In FX, USD/JPY is the big mover as it is down over 2% to 143.10 currently. The low earlier hit 142.15 as the volatility ramps up in the pair. It’s pretty much a flight to safety in markets with USD/CHF also down 0.9% to 0.8495 currently. As for commodity currencies, they are also slightly lower with AUD/USD down 0.3% to just under 0.6500.
It’s all about the emotions in trading when it comes to days like these. The old adage of never catching a falling knife comes to mind and it’s never wise to try and be a hero to pick a bottom. The kicking and screaming will stop when it stops.
In terms of data in Europe, we’ll get PMI readings across the region but these are final estimates so they won’t offer much. There’s also the Sentix survey but it isn’t a major release, not in this current market.
0715 GMT – Spain July services, composite PMI0745 GMT – Italy July services, composite PMI0750 GMT – France July final services, composite PMI0755 GMT – Germany July final services, composite PMI0800 GMT – Eurozone July final services, composite PMI0830 GMT – UK July final services, composite PMI0830 GMT – Eurozone August Sentix investor confidence0900 GMT – Eurozone June PPI figures
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
This article was written by Justin Low at www.forexlive.com.
