Daily Market Report

Economic releases out today include U.S. Initial Jobless Claims

Thu, Jul 24 2008, 12:32 GMT
by Wachovia Research Team

Wachovia


The U.S. dollar traded marginally higher versus most of the majors overnight but lost to some of the emerging market currencies as traders sought higher yielding assets. Particularly, the dollar lost ground to the Mexican peso as CPI came in above their target level of 5%. This further increased sentiment that Mexico's central bank will continue to hike rates in an effort to keep inflation in check.

The German Ifo Consumer Sentiment Index fell to a multi year low, increasing the likelihood that the ECB will keep rates steady in the short term. This pushed the euro to a two week low. In Britain, a drop in U.K. retail sales increased speculation that the economy is headed in to a recession, causing the Great British pound to fall versus the dollar.

The New Zealand dollar fell to a six month low after the Reserve Bank of New Zealand (RBNZ) cut rates by a 25 basis points yesterday. The Australian dollar also fell against the U.S. dollar due to falling oil prices and speculation that interest rates have peaked following the RBNZ?s rate cut.

Economic releases out today include U.S. Initial Jobless Claims and Continuing Claims at 8:30 AM EST and U.S. Existing Home Sales at 10:00 AM EST.

Published on  Thu, Jul 24 2008, 12:38 GMT

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