Today, we can still observe optimism on the market. Safe assets remain under pressure amid positive macroeconomic reports and expectations for the resumption of negotiations between China and the US to resolve their conflict. As it became known in the early morning, New Zealand CPI amounted to 1.1% in August, although a month earlier, it decreased by 0.1%. The key news in the first half of the day was the publication of the Chinese CPI which amounted to 2.8% in August, exceeding forecasts and indicating an acceleration in inflation growth in China.
Unexpectedly, employment data in Britain was positive. The unemployment rate in July fell to 3.8%, and the number of applications for unemployment benefits decreased by 28.2 thousand jobs. Thus, in the first half, the pound received an additional incentive to strengthen due to positive signals in the economy. Also, commodity currencies strengthened due to encouraging data on the Chinese economy.
In the afternoon, we expect publication of data on the number of vacancies in the labor market in the US, a report on the volume of construction of new homes in Canada and the publication of weekly oil reserves in the US late in the evening. Meanwhile, oil is rising on the back of optimism on the market, reducing tensions in international trade and the report on the likely reduction of oil supplies from OPEC.
