Good morning,
- Oil, stocks sink on weak data, Europe shines…
- BoJ's Iwata says the Yen won't fall further if rate differentials are already priced in. What's more, BOJ member IWATA says, BOJ is targeting price stability, not FX.
- Australia left its key interest rate unchanged Tuesday as a weaker currency aids local firms and soaring Sydney home prices argue against additional stimulus. Central bank Governor Glenn Stevens and his board kept the cash rate at a record-low 2 percent, as predicted by markets and economists following reductions in May and February. The currency fell through 73 cents last month and is down about 35 percent since a peak in 2011.
- Oil futures prices sank to a six-month low on Monday, weighed by oversupply and weaker demand expectations, while equity markets in Asia and on Wall Street fell as factory data from China and the United States disappointed. Brent slumped to its lowest since late January on worries about oversupply as OPEC pumped at record levels in July, adding to demand concern after weak data from China, the world's second largest energy consumer. U.S. crude hit its lowest since March. The resource-linked Canadian dollar was at its weakest in more than a decade against its U.S. peer as crude prices sank.
- Bank of Tokyo-Mitsubishi on EUR/USD: "Indeed, the weakness in the second half of July suggests that is now taking place. However, we suspect there’s a lot more potential selling to come," BTMU projects. "While the euro is weaker on the month, the fall in commodity prices could actually be offering the euro some temporary support. The commodity price drop means that other currencies more tightly linked to commodities have performed worse and hence that is limiting the appetite for selling the euro versus these currencies that are weakening due to the commodity price sell-off," BTMU argues. "However, falling oil prices, if extended, will complicate the ECB’s achievement of its inflation target that could mean the ECB needs to extend QE while China weakness that keeps capital flowing out of China means reduced FX reserves that removes reverse recycling support for the euro as well," BTMU adds. "Despite the resolution to the crisis in Greece, at least for now, we maintain that the fundamentals point to renewed EUR weakness and a decline in EUR/USD toward parity," BTMU projects. BTMU targets EUR/USD at parity by year-end and at 0.96 by Q1'16-end.
- Japanese cash earnings in June dropped 2.4% year-over-year. Adjusted for inflation, dropped 2.9%. Worst since Dec 2009.
- Was Athens Stock Exchange's 16% drop after a 5-wk closure a shock, Shouldn't have been.
- The drop in oil has led to $USD/CAD advancing for 9 consecutive weeks, says Forex Trading Instructor Tyler Yell, CMT.
- $DAX - Fifth Day Up, Watching For Signs of Waning Momentum
- Spanish Unemployment. The number of unemployed registered at the offices of the Public Employment Services has been reduced to 74 028 people in July, the biggest drop this month since 1998 and more than double that recorded in July 2014 (29,841 unemployed). This is also the sixth consecutive month to reduce the number of unemployed. In the last eight years, unemployment had declined on average in July by 37,000 people. Employment registers its biggest decline in July since 1998, with 74,028 fewer unemployed.
- Watch for today: US factory orders, EU Housing PPI, UK Housing.
Have a nice Day!
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: 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
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Bitcoin price extends retreat from $69K as old whales shift their holdings to new whales
Bitcoin price continues to move further away from the $69,000 threshold, gaining ground as BTC bulls hope for a retest of the $73,777 peak. This is because of the general assumption that clearing this blockade would set the tone for a reach higher, marking a new all-time high.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.