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Daily Forex Overview
Thu, Jul 31 2008, 07:13 GMT
by Raivis Zile
Previous session overview
On Wednesday, the dollar rose to a fresh five-week high against the euro for the second consecutive session, as U.S. market sentiment continued to recuperate.
The U.S. dollar strengthened against the euro earlier as poor euro zone sentiment data showed a deteriorating European economic outlook. The single currency slipped to a one-month low at 1.5522 versus the dollar before recovering due to the rebound in oil prices. EURUSD traded with a low of 1.5522 and a high of 1.5617 before closing the day at 1.5580.
British pound also recovered in line with the euro and cable rose from its two-week low at 1.9745 and traded around 1.9810 at New York closing.
The Japanese Yen crosses struggled despite the rally in US stocks. Japanese industrial production was weaker than the market expected, reflecting the overall problems in the Japanese economy. USDJPY rallied from 107.70/80 to highs above 108.30, of which about 30 pips came on the extension of the Fed's measures to improve money market conditions.
Suffering losses for the 6th straight day, the longest losing streak in nearly a year and a half, the Canadian dollar is under pressure due in part to a stronger greenback and softer commodity prices.
The Australian dollar was weaker late Thursday as the commodity currency lost ground against a quietly recovering greenback and domestic data added more clouds to the economic outlook.
Market expectation
Markets now turn to the second quarter gross domestic product to be released Thursday. Economists are looking for a GDP expansion of 2.3% after the prior quarter's growth of 1.0%.
Analysts expect to see much stronger than previously anticipated GDP result boosted considerably by stimulus fueled activity.
The euro is little changed on Thursday, and it's likely to hold steady against the dollar ahead of Friday's U.S. labor data. The oil price swings could push the dollar around a little but it looks like people are starting to think that the U.S. economy may be doing a little better than expected. So until the payrolls on Friday we may see the dollar hold up.
The Australian currency continues to test some critical long-term technical uptrend lines, indicating it could post a significant fall in the near-term.
Most important events of the day
| Date | Time:GMT | Currency | Indicator | Forecast | Prior |
| 7/31/2008 | 1:30 | AUD | Private Sector Credit m/m | 0.50% | 0.50% |
| 7/31/2008 | 1:30 | AUD | Trade Balance | 0.0B | -0.3B |
| 7/31/2008 | 1:30 | JPY | Average Cash Earnings y/y | 0.60% | 0.80% |
| 7/31/2008 | 1:30 | AUD | Retail Sales m/m | 0.10% | 0.90% |
| 7/31/2008 | 3:00 | NZD | Business Confidence | -38.7 | |
| 7/31/2008 | 5:00 | JPY | Housing Starts y/y | -18.10% | -6.50% |
| 7/31/2008 | 5:45 | CHF | CPI m/m | -0.50% | 0.20% |
| 7/31/2008 | 6:00 | GBP | Nationwide HPI m/m | -1.20% | -0.90% |
| 7/31/2008 | 7:55 | EUR | German Unemployment Change | -20K | -38K |
| 7/31/2008 | 9:00 | EUR | Unemployment Rate | 7.20% | 7.20% |
| 7/31/2008 | 9:00 | EUR | Italian Prelim CPI m/m | 0.40% | 0.40% |
| 7/31/2008 | 9:00 | EUR | CPI Flash Estimate y/y | 4.10% | 4.00% |
| 7/31/2008 | 12:30 | USD | Unemployment Claims | 395K | 406K |
| 7/31/2008 | 12:30 | USD | Employment Cost Index q/q | 0.70% | 0.70% |
| 7/31/2008 | 12:30 | USD | Advance GDP Price Index q/q | 2.40% | 2.70% |
| 7/31/2008 | 12:30 | USD | Advance GDP q/q | 2.20% | 1.00% |
| 7/31/2008 | 12:30 | CAD | GDP m/m | 0.20% | 0.40% |
| 7/31/2008 | 13:45 | USD | Chicago Business Barometer | 49 | 49.6 |
| 7/31/2008 | 14:35 | USD | Natural Gas Storage | 69B | 84B |
| 7/31/2008 | 17:00 | USD | Treasury Sec Paulson Speaks | ||
| 7/31/2008 | 23:30 | AUD | Manufacturing PMI | 47 |
Published on Thu, Jul 31 2008, 07:16 GMT
Archive
- Daily Forex Overview
Published On Tue, Dec 2 2008, 08:25 GMT - Daily Forex Overview
Published On Mon, Dec 1 2008, 08:13 GMT - Daily Forex Overview
Published On Fri, Nov 28 2008, 08:44 GMT - Daily Forex Overview
Published On Thu, Nov 27 2008, 10:39 GMT - Daily Forex Overview
Published On Wed, Nov 26 2008, 08:45 GMT
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