Japanese Yen down against its counterparts except for the NZD Currencies USD US Dollar is flat against the EUR, up against the JPY (+0.13%), down against the GBP (+0.02%), up against the USD/CHF (+0.04%), down against the AUD (+0.16%), and up against the CAD (+0.02%). Clearly, a risk-on day, with safe havens such as the CHF and JPY down. The Consumer Price Index report is due today and the market is getting ready for that. Consensus is for a steady YoY figure at 2.1% in June, though a higher reading could eventually signal that a rate hike is due. Also on the economic calendar is the US Housing Price Index (to rise from 0.0% to 0.4% in May), US Existing Home Sales (to ease from 4.9% to 2.0% in June), and the US Richmond Fed Manufacturing Index (set to improve from 3 to 5 in July). GBP Investors will be trading the UK Public Sector Net Borrowing, due real soon, with expectation that debt will decrease from £11.477B to £9.200B in June. After that, UK CBI Industrial Trends Survey will report its Orders data and its forecast is for a decline from 11 to 8 in May (MoM). The GBP is up against the Dollar (0.02%), down against the EUR (-0.04%), and a “mess” against the AUD (-0.18%). Like the other majors, Cable is beating safe havens CHF and JPY, by 0.06% and 0.13%, respectively. JPY The Japanese Yen is down today, against all its counterparts: USD (-0.12%), EUR (-0.10%), CHF (-0.05%), GBP (-0.13%), AUD (-0.32%), etc. All counterparts, but one: the New Zealand Dollar that is trading ahead of the RBNZ policy meeting, with some expectations of a rate hike. Back to the JPY, Japan saw three indicators coming out during the Asian session. All industry activity performed better, at 0.6% in May from -4.6%. Leading economic index eased from 106.5 to 104.8 in May, and the Coincident Index improved from 111.1 to 111.3 in May. Commodities Gold Gold is weaker today, potentially due to the fact that Dollar-to-Equities strength may be offsetting bids for safe havens, such as Gold. Dollar strength, that might extend, weighs on gold. In its turn, positive economic data helps strengthening the Dollar. Soon, the Consumer Price Index will be released. Gold trades at $1306, down by 6$ today. Crude Oil Shy upside movement has led WTI crude oil to $103.35, close to the 50-day SMA at 103.52. The Israel-Palestine conflict along with US-Russia tensions on the Ukraine conflict aren’t a massive ordeal to oil, right now.
Posted on: Tue, 22 Jul 2014 07:37:19 +0000
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