Daily Fundamental Dose: 24-July-2014
Euro region currency continued falling to the lower levels as the market players remained afraid of the Euro region economy due to ongoing geo-political crisis. Moreover, the pessimistic readings of French Manufacturing PMIs continued adding to the weakness to the Euro while the Spanish Unemployment Rate remained a bit positive together with French Flash Services PMI. The German Manufacturing and Services PMIs remained good for EURO as both surpassed their prior and forecast levels.
GBP traders seemed worried as the MPC and Interest rate voting remained unaffected of the recent speculation over the rate hike. Moreover, the growth outlook for the second half cooled slightly.
The NZD weakened even after the interest rate hike by RBNZ, signaling that the traders have already priced in the hike, as expected. Further, the rate statement, released together with the interest rate decision, signaled that the central bank wants to wait for impact of recent rate hikes which in-turn signals the start of the next move of NZD, which probably signals downtrend.
AUD remained higher due to improved Core- CPI spurring expectations of recent rate hike. Moreover, the recent news from New Zealand’s financial minister’s indication to invest in Australia suggested the improvement in Aussie.
Flash reading of Chinese HSBC Manufacturing PMI, released early today, continued supporting the optimism for the industrial world and the commodity currency.
For the rest of the day, the UK Retail Sales together with US Jobless Claims and New Home Sales become additional fuels for the forex market.
Friday remains busy for the week as it scheduled to release ANZ Business Confidence, German Releases of Consumer and Business Sentiment, Preliminary reading of Q2 2014 GDP and US Durable Goods Orders.
During the upcoming week, forex calendar is heavily filled with important events like US FOMC statement, CB Consumer Confidence and Advance GDP. Moreover, the flash reading of Manufacturing and Non-Manufacturing PMI by china together with EU flash CPI are likely to ad fuel to the volatile forex market.
Have a great time ahead…..