USD hands back some gains on soft data; CAD rises as CPI beats

Summary:

• USD back to unchanged for the week after Uni Mich hits 11-month low

• CAD spikes higher after CPI hits highest since 2011

• Turkish crisis in 9 charts

• Crypto gains as UEFA trials blockchain

• Stock of the week: TUI

The final economic release of note for the week has seen a further weak print from the US after yesterday’s Philly Fed disappointment. The University of Michigan consumer sentiment index for the current month fell to its lowest level in 11-months with a reading of 95.3 coming in well below the 98.1 expected. Even though the prior reading was revised higher to 97.9 from 97.1 it doesn’t mask the fact that this is another weak data point which raises further questions surrounding the rally in the US dollar. The USDIDX may be close to forming a classic reversal signal on W1 after an impressive run higher of late.

A blowout Canadian inflation print has seen a sharp move higher in the Canadian dollar in the past hour, with the currency rising across the board. Specifically the July CPI Y/Y increased by 3.0% vs 2.5% expected, with the prior reading also being 2.5%. This is the highest print for this metric since 2011 and is clearly a strong beat. However, the core readings are not as high which could suggest the data isn’t as strong as it first appears.

Turkey stunned investors in August by immersing in the currency crisis at its own wish. Although a reckless behaviour of president Erdogan is a direct trigger, Turkey had some well documented flaws. We explained the crisis in an earlier post in 9 charts.

Crypto markets are looking to extend their recovery today with a sea of green across the board. ootball is definitely one of the most popular sports all around the world. Therefore, nobody should be surprised that blockchain is more and more famous also there. UEFA, the European football body, has announced that it completed the trial of a new blockchain-powered system. The mobile ticketing app, built on blockchain technology, was tested at the UEFA Super Cup match (between Real Madrid and Atletico Madrid) in Tallinn, Estonia.

One of the companies that has enjoyed increased interest recently is TUI (TUI.UK and TUI.DE on xStation5). There are two reasons behind this. The first one is the earnings report release that took place at the end of the previous week while the ongoing crisis in Turkey is the second one. In this analysis we take a look at the TUI’s latest financial data, possible impact from the Turkish crisis as well as compare the company with its biggest rival.