Today's Highlights

  • Poor Chinese imp/exp data worries markets

  • Eurozone industrial production due


Current Market Overview

The New Zealand Dollar weakened overnight after the NZ Purchasing Managers Index was below market expectations, even though it was a rise from last month. However, Sterling’s lack of oomph (technical term) means the GBPNZD rate is still down at 1.8750.

Poor Chinese imp/exp data worries markets

The Chinese data we saw overnight showed a sharp drop in exports (a 2 percent contraction in fact) and a continued decline in imports; 4.5 percent contraction after the 8.5 percent drop last month. These are very worrying for the countries that supply China with raw materials but the drop in demand for Chinese goods has something to do with the US tariffs and also the slowdown we are seeing in the EU and elsewhere.

Eurozone industrial production due

This is going to be a slow day for data but there are a few tidbits to get excited about. Perhaps most interesting is Eurozone industrial production, which may well show an improvement from last month’s 0.5% contraction. That would be good for the Euro, which has benefitted from a few improvements in economic data this week. The underlying concern over the global economy still weighs on everything though. There is an unconfirmed report that there may be a Eurozone Finance Ministers meeting either today or tomorrow as well.

And it’s going to be a really busy weekend for sport. The British Grand Prix, England’s cricketers in the World Cup final after beating Australia by 8 wickets (but I’m not gloating) and two fantastic Wimbledon singles finals to come. I can feel a sofa day coming on. Have a great weekend

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD: risk aversion could send it sub-1.1180

EUR/USD capped by a critical Fibonacci resistance for two weeks in-a-row. The American dollar has closed the week on a high note as hopes for significant rate cuts faded.


GBP/USD: bears to retake control on a break below 1.2475

Renewed demand for the greenback has resulted in the GBP/USD pair giving back half of its Thursday’s gains at the end of the week, with the pair closing it just above the 1.2500 figure.


USD/JPY: bearish case firmer once below 107.20

The USD/JPY pair flirted with the 108.00 level by the end of the week on renewed demand for the greenback but retreated sharply from the level to settle at around 107.70.


Something has spooked the Fed

We wish we knew what it is. Wild talk of the US joining Japan and Europe with zero or negative return on the 10-year is or should be very frightening.

Read more

Gold consolidates around $ 1440, eyes US data for fresh direction

Gold (futures on Comex) extends its side-trend around the 1440 mark into the mid-European session, having stalled its retreat from 2019 highs of 1454 near 1437 region.

Gold News