Good morning and welcome to today’s foreign exchange market commentary on 9th of July
Here are MyCurrencyTransfer.com’s top 5 currency highlights:
- Bearish data puts GBP on the backseat
- Euro trading on the defensive on Italy rating downgrade
- US equities up for third consecutive session
- USD/JPY highly volatile ahead of BoJ minutes
- EUR/CAD pair plummets on optimistic Canadian housing data
CURRENCY RATES OVERVIEW
GBP/EURO – 1.1636
GBP/USD – 1.4860
GBP/CHF – 1.4456
GBP/CAD – 1.5653
GBP/AUD – 1.6195
GBP/ZAR – 14.9087
GBP/JPY – 150.0473
GBP/HKD – 11.5267
GBP/NZD – 1.8902
GBP/SEK – 10.0942
Mid-market rates as of 2013-07-09 17:53 UTC
Key releases in the next 24 hours that may affect currency date:
Australia: AUD NAB Business Confidence (JUN)
Europe: EUR EU-27 Finance Ministers Meet in Brussels, CHF Retail Sales (Real) (YoY) (MAY), IMF Releases Global Economic Forecasts
United Kingdom: GBP RICS House Price Balance (JUN), GBP Industrial Production (YoY) (MAY), GBP Manufacturing Production (YoY) (MAY), GBP Total Trade Balance (Pounds) (MAY), GBP Trade Balance Non EU (Pounds) (MAY), GBP Visible Trade Balance (Pounds) (MAY), GBP NIESR Gross Domestic Product Estimate (JUN)
New Zealand: NZD NZIER Business Opinion Survey (2Q), NZD NZ Card Spending – Retail (MoM) (JUN), NZD NZ Card Spending (MoM) (JUN)
United States of America: IMF Releases World Economic Outlook Update
China: CNY Consumer Price Index (YoY) (JUN), CNY Producer Price Index (YoY) (JUN),
Canada: CAD Housing Starts (JUN)
Japan: JPY Machine Tool Orders (YoY) (JUN P), JPY Tertiary Industry Index (MoM) (MAY)
Bearish data puts GBP on the backseat
The IMF released its Global Economic Forecasts publication today, which cut Eurozone growth projections this year by 20bps to -0.6%. The UK too posted bearish news with its reports of worse than expected production numbers. GBP Industrial Production for May declined by 2.3 per cent on a year on year basis as compared to the expected decline of 1.5% and the -1.4% figure in April. Likewise GBP Manufacturing Production in May reported on a year on year basis also posted new lows dipping by -2.9% as compared to the expected decline of -1.60 and the prior figure in April at -0.9% prior.
Euro trading on the defensive on Italy rating downgrade
Euro trading witnessed new lows during today’s trading session in the region of 1.2760/55 after the ratings agency S&P lowered Italy’s credit rating to BBB from BBB+. Markets expect a less austere tone from tomorrow’s speech by Chief Bernanke of the US Federal Reserve and this economic event is expected to increase selling pressure around the euro. Analysts expect that Bernanke will acknowledge the firmer pace of the US labor market, which would serve to trigger a higher level of demand for the greenback, which in turn will threaten the Euro.
US equities up for third consecutive session
Shares in the US markets are extending gains for the third consecutive session on Tuesday as increasing hopes of better-than-expected earnings reports boost trading. The greenback, in terms of the US Dollar Index has posted steady advances and trading is in the upper end of the 84.70 region. With regards to stock indices, The Dow Jones is advancing 0.53%, followed by the Nasdaq which is up by 0.55% and the S&P500 cruising at over 0.73%.
USD/JPY highly volatile ahead of BoJ minutes
The USD/JPY walked along in the hand of a weaker dollar on Monday with the pair slipping from over the 101.50 level to the 100.8 region. Losses were however reversed overnight thanks to the turbulent European markets, and the pair was last observed at over the 101.00 handle. Over the medium-term however, as the Bank of Japan extends monetary accommodation and as the US Fed becomes more inclined towards a tighter policy, the market widely expects to see the USD/JPY advancing. In the meantime we await the BoJ’s and Fed’s minutes later on in the week.
EUR/CAD pair plummets on optimistic Canadian housing data
EUR/CAD pair faltered during today’s trading declining by nearly 35 pips. The pair dropped earlier on owing to some optimistic data coming out of Canada. In terms of economic data, Canadian Housing Starts were reported at 199.6K in June on a year on year basis, having exceeded expectations of 187.0K, and compared with the prior figure of 204.6K in May.
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