INGOT Brokers AU | Fundamental Report (2017-06-16)

Fundamental Report (2017-06-16)


The US Dollar ended Thursday at its two week’s high supported by the mixed to mostly positive economic data that signaled a stronger than expected economic growth as well as the Federal Reserve rising its interest rate for the second time this year.

Yesterday, The US Department of labor reported that initial jobless claims decreased by 5,000 to 237,000 against a 3,000 expected decline while Philadelphia Fed Manufacturing Survey fell to 27.6 down from 38.8 but above the expected 24.0.

Meanwhile, Industrial production was at 0.0% down from 1.1% and below the expected 0.2% in addition to the capacity utilization data falling to 76.6% down from 76.7% and also below the expected 76.7%.

The US Dollar Index, which measures the strength of the US Dollar against a basket of major currencies, surged to settle at is two week’s high at 97.47 up from 96.89.

On the other hand, the European Euro fell to its two week’s low at 1.1144 down from 1.1217 witnessing its worst decline since early May 2017 due the stronger US Dollar and the disappointing trade balance data, while the Great British Pound ended slightly higher at 1.2756 despite the UK’s weak retail sales data as few members of the Bank of England’s policy committee voted in favor of a rate hike thus raising the expectations of a possible near future interest rate hike.

UK’s retail sales numbers for the month of May were at -1.2% down from 2.5% below the -0.8% expected on its monthly basis and the European Union trade balance were at 17.9B Euros down from 30.9B and significantly below the expected 27.2B.

Elsewhere in Japan, the Japanese Yen weakened against the US Dollar as investors left the safe haven in favor of more risky asset after the Federal Reserve interest rate decision has passed and as investors are awaiting the Bank of Japan interest rate decision earlier during today’s trading session.

The pair settled at 110.93 after Thursday’s trading session up from 109.57 realizing its largest single day gain since mid-January 2017.

Due the stronger US Dollar and the falling Oil prices, the Canadian Dollar weakened against its US counterpart, as the US Dollar denominated currency ended higher at 1.3268 up from 1.3246.

Moreover, both the Australian and the New Zealand Dollars fell against their US counterpart with the Australian Dollar ending at 0.7579 down from 0.7586 and the New Zealand Dollar settling at 0.7206 and down from 0.7270.

The New Zealand’s Gross Domestic Product came out below its expectations at 0.5% and 2.5% on both quarterly and yearly basis respectively.

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