INGOT Brokers Australia | Fundamental Report (2017-07-31)

Fundamental Report (2017-07-31)

Overview

USD has reached the lowest level since 13 weeks on Friday as on Wednesday Fed Reserve commented that the U.S inflation is still below the target level. On the other hand, Friday’s U.S economic reports showed that as it expected the U.S GDP grew by 2.6 in the second quarter up from 1.2 in the first quarter. Moreover,  the cost index of U.S employment for the second quarter came lower than expectations by 0.1%, where it rose by 0.5%, and the expectation was growing by 0.6%. Separately, the index of consumer sentiment rose at 93.4 higher than the preliminary estimate by 0.3%, reported by University of Michigan.

 

USD index declined against the basket of six major currencies by 0.49% at 93.31.

 

In Eurozone, EUR appreciated against USD at 1.1737, supported by Mario Draghi's comments that the ECB will start to reduce the monetary stimulus soon as the European economy recovers. Also, GBP was up against USD at 1.3104.

 

Elsewhere in Asia, USD USDJPY declined by 0.19% at 111.03, while AUD and NZD rose against their U.S counterpart reaching 0.7995 and 0.7496 respectively.

 

Meanwhile, CAD also rose against its U.S counterpart as the positive U.S economics report failed to boost the USD. CAD supported by higher oil prices and strong growth in  Canadain GDP, Where the Canadian GDP grew by 0.6 in May, beating the expectation where the expectation was an increase by only 0.2% and higher than April ones by 0.4%.

 

Some significant events may affect the market:

 

Tuesday, August 1

 

China is to publish its Caixin manufacturing PMI.

 

The Reserve Bank of Australia is to announce its benchmark interest rate and publish a rate statement which outlines economic conditions and the factors affecting the monetary policy decision.

 

The euro zone is to release preliminary data on second quarter economic growth.

 

The UK is to release data on manufacturing activity.

 

The U.S. is to release data on personal spending and the Institute for Supply Management is to publish its manufacturing index.

 

Wednesday, August 2

 

New Zealand is to release its quarterly jobs report.

 

Australia is to report on building approvals.

 

The UK is to release data on construction activity.

 

The U.S. is to release the ADP nonfarm payrolls report.

 

Thursday, August 3

 

Australia is to report on the trade balance.

 

The UK is to release data on service sector activity.

 

The Bank of England is to announce its latest interest rate decision and publish its meeting minute’s along with its quarterly inflation report. BOE Governor Mark Carney, along with other officials, is to hold a press conference to discuss the inflation report.

 

The U.S. is to release data on jobless claims, factory orders and the ISM is to publish its non-manufacturing index.

 

Friday, August 4

 

The RBA is to publish its latest monetary policy statement, while Australia is to release data on retail sales.

 

Both Canada and the U.S. are to round up the week with data on trade, and both countries are also set to release their monthly employment reports.

 

 

 

 

 

 

 

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