The main events of the past week included reports on business activity in the USA, a meeting of the Reserve Bank of Australia, and employment data in Canada. Additionally, the weekly report on initial unemployment claims in the US unexpectedly shifted market sentiment.
The US business activity index (PMI) for the service sector in July was 55.0, falling short of the forecasted 56.0. However, it was slightly higher than the previous value of 55.3. Additionally, the ISM Non-Manufacturing Index increased from 48.8 to 51.4 in July.
The Reserve Bank of Australia held interest rates steady at 4.35%, in line with market expectations. The RBA’s decision emphasized its commitment to taking necessary actions to combat inflation, which dampened expectations for a potential easing of monetary policy in November.
The EIA reported a decline of 3.728 million barrels in US crude oil reserves for the week ending August 2, surpassing the forecasted drop of 1.600 million barrels.
Initial claims for unemployment benefits in the US for the week ending August 3 fell to 233,000, lower than both the previous week's figure of 250,000 and the expected 241,000. This alleviated concerns about the labor market and potential economic downturn, leading to improved market sentiment.
Germany's Consumer Price Inflation for July was 2.3% year-over-year, up slightly from 2.2% the previous month. Monthly price growth was 0.5%, aligning with forecasts.
At 12:30 p.m. GMT, Canadian labor market data for July is anticipated to be released. Employment is expected to increase by 26.9 thousand, compared to a previous decline of -1.4 thousand. The unemployment rate is also forecasted to rise from 6.4% to 6.5%.
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