Dukascopy Bank Team
Dukascopy Bank SA
EUR/USD: US Building Permits
The Greenback weakened against the European Single Currency, following the United States Building Permits release on Thursday at 12:30 GMT. The EUR/USD currency pair 1 minute candle gained only 4 pips, or 0.03% at the release time, but combined with the buying action occurring before the data was released, there was a surge of 17 pips or 0.15% in total.
The Census Bureau released US Building Permits data that came in line with expectation of 1.30 Million. There was no change between actual and forecasted data this time.
Scott Volling, principal at PricewaterhouseCoopers said: "June appeared to be an anomaly, but July results indicate a trend. With permits still fairly solid, we will need to see if the trend continues into the late summer/early fall or if recent permits translate to stronger starts in the coming months ".
GBP/USD: UK Retail Sales
The Greenback weakened against the British Pound, following the United Kingdom Retail Sales release on Thursday at 08:30 GMT. The EUR/USD currency pair gained 20 pips, or 0.16%.
The Office for National Statistics released UK Retail Sales data that came better-than-expected at 0.7% with the forecasted of 0.2%. The actual data is good for the currency because there come more opportunities for the change in the total value of inflation-adjusted sales at the retail level.
The Office for National Statistics senior statistician, Rhian Murphy said: "Many consumers stayed away from some high street stores in July, but online sales were very strong, supported by several retailers launching promotions. Food sales remained robust as people continued to enjoy the World Cup and the sunshine."
LIGHT/USD: US Crude Oil Inventories
Oil prices decreased after the US Crude Oil Inventories data release on Wednesday at 14:30 GMT. The one-minute candle lost 65 pips, or 0.99 %. The price continued to decrease in the next hours.
The Energy Information Administration released the US Crude Levels data that came out better-than-expected of 6.8M, compare to forecasted negative 2.6M.
Kevin Nicholson, the chief market strategist at RiverFront Investment Group said: "Really, everything today has been playing on the idea of the trade tensions and Turkey. Obviously crude is down today because U.S. stockpiles rose over the last week to their highest level since March 2017".
EUR/USD: US Retail Sales
The Greenback strengthened against the European Single Currency, following the United States Retail Sales release on Wednesday at 12:30 GMT. The EUR/USD currency pair lost 6 pips, or 0.06%. The change is insignificant and did not affect seriously the whole image of the main currency pair.
The Census Bureau released Retail Sales data that came better-than-expected of 0.5% to forecasted 0.1%. The data represents a good sign for the Greenback, as well as an increase of total value of sales at the retail level.
Michael Feroli, an economist at JPMorgan Chase said: "It gives us comfort that consumers are nowhere near to being as overstretched as they were in the years heading into the Great Recession".
GBP/USD: UK CPI
The Greenback strengthened against the British Pound, following the United Kingdom Consumer Price Index release on Wednesday at 08:30 GMT. The GBP/USD currency pair lost 11 pips, or 0.08%. Right after the data release the main currency pair had a significant downtrend, but luckily, the main currency pair recovered itself to continue fluctuating in the 1.2710 area.
The Office for National Statistics released Consumer Price Index data that came in line with expectation of 2.5%. This is considered the UK's most important inflation data because it's used as the central bank's inflation target, which means that it is important for traders to follow this data to stay aware of currency valuation because rising prices lead the central bank to raise interest rates.
The senior economist at the Institute of Directors, Tej Parikh, said: "For households this isn't good news, as the already weak growth in their pay packets is being further eroded by high prices. This is likely to weigh down consumer spending, posing fresh problems for embattled high street businesses ".
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
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