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
AUD/USD post moderate gains on solid US data, weak Aussie PMI
The Australian Dollar registered solid gains of 0.65% against the US Dollar on Thursday, courtesy of an upbeat market mood amid solid economic data from the United States. However, the Federal Reserve’s latest monetary policy decision is still weighing on the Greenback. The AUD/USD trades at 0.6567.
EUR/USD recovers to top end of consolidation ahead of Friday’s US NFP
EUR/USD drove back to the top end of recent consolidation on Thursday, recovering chart territory north of the 1.0700 handle as market risk appetite regains balance heading into another US Nonfarm Payrolls Friday.
Gold recoils on hawkish Fed moves, unfazed by dropping yields and softer US Dollar
Gold price clings to the $2,300 figure in the mid-North American session on Thursday amid an upbeat market sentiment, falling US Treasury yields, and a softer US Dollar. Traders are still digesting Wednesday’s Federal Reserve decision to hold rates unchanged.
Ethereum may sustain trading inside key range, ETH ETFs to be delayed until 2025
Ethereum is beginning to show signs of recovery on Thursday despite a second consecutive day of poor performance in Hong Kong's spot Ethereum ETFs. Bloomberg analyst James Seyffart has also shared that a spot Ethereum ETF may not happen in the US in 2024.
FOMC in the rear-view mirror – NFP eyed
The update from May’s FOMC rate announcement proved more dovish than expected, which naturally weighed on the US dollar (sending the DXY to lows of 105.44) and US yields, as well as, initially at least, underpinning major US equity indices.