It was an extremely quiet day yesterday with no fundamental data released to cause any volatility on the forex markets. However, today brings a busier day of data releases with the ILO Unemployment, Claimant Count Change and Rate which are aligned to come out at similar figures to last months with the exception of the Claimant expected to read at -30.0k. Furthermore, the Bank of England are releasing their Quarterly Inflation Report for the UK and Mark Carney will be giving his Governor speech later this morning so it will be interesting to see if the pound bounces back or continues to be under pressure against major counterparties. Sterling continues the trend of further losses against the greenback as the market dipped to a daily low of 1.6750.
More negative news for the power house as German investor confidence fell to the lowest level since 2012 as the crisis in Ukraine along with a sluggish euro-area recovery damp the outlook for Europe’s largest economy. The widely watched investor confidence index calculated by the ZEW economic institute fell by 18.5 points to 8.6 points in August and this is likely connected to the ongoing geopolitical tensions with Russia and Ukraine that seem to be having a detrimental effect on Germany. Today brings more high impact data from Germany in the form of YoY and MoM figures from CPI figures which is expecting to read at 0.8% for YoY and no change from last month’s figure of 0.3% for MoM. Furthermore, we have Industrial Production figures coming from the struggling economy as a whole later this morning.
Job openings rose in June to the highest level in more than 13 years, firming up the U.S. labour market picture for the second half of the year. The number of unfilled positions climbed by 94,000 to 4.67 million, the most since February 2001, from a revised 4.58 million in May, a report from the Labour Department showed yesterday. Retail sales are going to be released later this afternoon and if the readings exceed the consensus of 0.2% growth this could lead to further dollar strength against all its counterparties. The Euro continues to get hammered by the dollar as the pair closed the London session out at 1.3350.
FC Exchange is a trading name of Foreign Currency Exchange Limited. Registered office: Salisbury House, Finsbury Circus, London, EC2M 5QQ. Registered No.5452483. Authorised by the Financial Conduct Authority (No.511266) under the Payment Service Regulations 2009 for the provision of payment services. HM Revenue & Customs MLR No.12215508. Copyright © 2013 Foreign Currency Exchange. All Rights Reserved.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.