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Economic calendar (GMT0):
(Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual)
01:30 Australia National Australia Bank's Business Confidence July 8 Revised From 10 4
06:00 Japan Prelim Machine Tool Orders, y/y July 6.6% 1.6%
09:00 Eurozone ZEW Economic Sentiment August 42.7 47.6
09:00 Germany ZEW Survey - Economic Sentiment August 29.7 32 25
The U.S. dollar traded mixed against the most major currencies ahead of the U.S. economic data. Preliminary productivity in the U.S. non-farm businesses is expected to rise at a 1.6% annual rate in the second quarter, after a 3.1% drop in the first quarter.
Preliminary unit labour costs are expected to increase 0.1% in the second quarter, after a 6.7 gain in the first quarter.
Wholesale inventories in the U.S. are expected to rise 0.4% in June, after a 0.8% gain in May.
The greenback remained supported by the yuan devaluation. The yuan devaluated almost 2% against the U.S. dollar on Tuesday. The People's Bank of China set Tuesday's daily fixing at 6.2298 per U.S. dollar, down from 6.1162 on Monday.
A weaker yuan should help to boost the activity in the manufacturing sector and exports, which dropped 8.3% year-on-year in July.
The euro traded higher against the U.S. dollar on news that Athens reached a deal. The Greek government said on Tuesday that it reached a deal on the third bailout programme with its international lenders.
Meanwhile, the economic data from the Eurozone was mixed. Germany's ZEW economic sentiment index declined to 25.0 in August from 29.7 in July, missing expectations for a rise to 32.0.
"The German economic engine is still running smoothly. However, under the current geopolitical and global economic circumstances a substantial improvement of the economic situation in Germany over the medium term is improbable. That is why economic sentiment has declined," the ZEW President Clemens Fuest.
Eurozone's ZEW economic sentiment index increased to 47.6 in August from 42.7 in July.
The British pound traded higher against the U.S. dollar in the absence of any major economic reports from the U.K.
The Canadian dollar traded mixed against the U.S. dollar ahead of the release Canadian housing starts data. Housing starts in Canada are expected to decline to 195,000 units July from 202,800 units in June.
EUR/USD: the currency pair climbed to $1.1049
GBP/USD: the currency pair increased to $1.5615
USD/JPY: the currency pair rose to Y125.01
The most important news that are expected (GMT0):
12:15 Canada Housing Starts July 202.8 195
12:30 U.S. Nonfarm Productivity, q/q (Preliminary) Quarter II -3.1% 1.6%
12:30 U.S. Unit Labor Costs, q/q (Preliminary) Quarter II 6.7% 0.1%
14:00 U.S. Wholesale Inventories June 0.8% 0.4%
23:50 Japan Monetary Policy Meeting Minutes
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