Market Review - 29/07/2014 22:42GMT
U.S. dollar rises broadly on upbeat U.S. consumer confidence
The greenback rose broadly against major peers on Tuesday after the release of stronger-than-expected U.S. consumer confidence data. Euro dropped to a fresh 8-month low at 1.3404 versus the U.S. currency.
U.S. Conference Board consumer confidence came in at 90.9, much stronger than market consensus of 85.3. however, U.S. single-family home prices fell unexpectedly in May, declining for the first time in more than two years. The S&P/Case Shiller composite index of 20 metropolitan areas declined 0.3 percent in May on a seasonally adjusted basis, its first fall since January 2012, versus economists’ forecast of 0.2 percent rise.
The greenback rose against the Japanese yen and Swiss franc to 102.16 and 0.9074 respectively, however, trading volume is relatively thin as traders awaited U.S. economic data and a potentially more hawkish tone from the Federal Reserve.
The British pound rebounded briefly to 1.6995 and then tumbled to a near 1-1/2 month low at 1.6934. Cable showed muted reaction to a higher-than-expected U.K. mortgage approvals. Jun figures came in at 67.196K versus forecast if 62.6K. Lending amount came in at 2.08 billion versus forecast of 1.90 billion.
In other news, IMF managing director Christine Lagarde said IMF's current assumptions hold, Ukraine needs no additional financing; Ukraine program premised on having some resolution of country's conflict in not too distant future.
Wednesday will see the release of Japan’s industrial output, industrial production forecast, Swiss KOF indicator, Eurozone business climate, economic and services sentiment, Germany’s CPI and HICP, U.S. ADP employment, Canada’s producer prices, U.S. GDP and FOMC rate decision.
U.S. dollar rises broadly on upbeat U.S. consumer confidence
The greenback rose broadly against major peers on Tuesday after the release of stronger-than-expected U.S. consumer confidence data. Euro dropped to a fresh 8-month low at 1.3404 versus the U.S. currency.
U.S. Conference Board consumer confidence came in at 90.9, much stronger than market consensus of 85.3. however, U.S. single-family home prices fell unexpectedly in May, declining for the first time in more than two years. The S&P/Case Shiller composite index of 20 metropolitan areas declined 0.3 percent in May on a seasonally adjusted basis, its first fall since January 2012, versus economists’ forecast of 0.2 percent rise.
The greenback rose against the Japanese yen and Swiss franc to 102.16 and 0.9074 respectively, however, trading volume is relatively thin as traders awaited U.S. economic data and a potentially more hawkish tone from the Federal Reserve.
The British pound rebounded briefly to 1.6995 and then tumbled to a near 1-1/2 month low at 1.6934. Cable showed muted reaction to a higher-than-expected U.K. mortgage approvals. Jun figures came in at 67.196K versus forecast if 62.6K. Lending amount came in at 2.08 billion versus forecast of 1.90 billion.
In other news, IMF managing director Christine Lagarde said IMF's current assumptions hold, Ukraine needs no additional financing; Ukraine program premised on having some resolution of country's conflict in not too distant future.
Wednesday will see the release of Japan’s industrial output, industrial production forecast, Swiss KOF indicator, Eurozone business climate, economic and services sentiment, Germany’s CPI and HICP, U.S. ADP employment, Canada’s producer prices, U.S. GDP and FOMC rate decision.
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.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.