Halo Financial Team
Halo Financial
Today's Highlights
Mortgage approvals rise in the UK
Weaker inflation data may weigh on the euro
Strong economic sentiment is supporting the dollar
FX Market Overview
It was a quiet day on the foreign exchanges yesterday with very little macro data for the markets to get their teeth into. In the Uk It was reported that mortgage approvals had picked up as they rose to a 4 month high of just above 67,000. This spike is despite the implementation of tighter lending policies from high street banks as the Bank of England attempts to cool the rampant housing market. It remains to be seen if this is simply a spike or if policy makers will have to do more to help ease back price rises. The Pound suffered a little but that was mainly down to dollar strength rather than Sterling weakness.
The early highlight today will be on inflation data from the Eurozone. There has been an element of volatility in German inflation readings in May and June but the underlying picture remains stable. Lower energy inflation should drag the July HICP down from 1% last month which should lead to confirmation of a further slowing in the wider Eurozone inflation data tomorrow. The ECB may not be forced to react immediately as they probably still have time on their hands. They will want to see the impact of the June easing measures before their next move. Nonetheless a softer reading will certainly weigh on the euro which is already below 1.3400 this morning.
The US$ has continued to strengthen overnight after a strong trading session yesterday and this theme should continue. Important Data from the US today should show an increase of 265,000 jobs from the ADP and solid annual growth figures of around 3.0%. This should keep the dollar nice and perky ahead of the interest rate decision this evening which is unlikely to bring any surprises( a further $10bln reduction in stimulus is priced in). Fridays Non-Farm payrolls will be very closely watched and another solid release above 200k should keep the dollar bulls happy.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
GBP/USD extends recovery gains to near 1.3250, as BoE looms
GBP/USD extends the recovery to near 1.3200 in European trading on Thursday, having found buyers near 1.3150. A fresh US Dollar pullback and a rebound in risk sentiment offer support to the pair ahead of the BoE policy announcements.
EUR/USD advances to 1.1150, focus shifts to ECB-speak
EUR/USD is well-bid near 1.1150 in the European session on Thursday. The pair is underpinned by the renewed US Dollar retreat and an upbeat mood. Traders digest the Fed's dovish outlook, bracing for ECB-speak for fresh trading incentives. US data are also eyed.
Gold price jumps back closer to all-time peak, $2,600 remains in sight amid fresh USD weakness
Gold price regains positive traction following the previous day's pullback from the all-time peak and builds on its steady intraday ascent heading into the European session on Thursday.
BoE expected to keep interest rate unchanged at 5% as price pressures persist
After a close call in August, the Bank of England’s September interest rate decision is keenly awaited for fresh cues on the bank’s future policy action and the pace of its bond sales.
Bitcoin surges to $62,000 mark after 50 bps Fed rate cut
Bitcoin and Ripple eye for a rally as they break and find support around their resistance barrier. Meanwhile, Ethereum demonstrates signs of recovery as it approaches a critical resistance level, indicating that an upward rally could be on the horizon if it successfully breaks through.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.