Inflation nowhere to be seen

31 July, 2015

The last trading day of the month, which does bring risk of choppier than normal trading as institutional investors re-balance portfolios and funds adjust to fit around month end performance statistics. The standout yesterday was the weaker euro, given that the single currency has been holding up relatively well earlier in the week. Falling bond yields were playing a part, together with more negative headlines surrounding Greece from the IMF, although it’s no surprise to see that they remain reluctant to get involved in a third bailout. The 1.0893 level will act as continued support for EURUSD into month end, whilst EURJPY is currently struggling with the 136 level after yesterday’s push below. Japanese inflation data, released overnight, has come out better than expected on the headline rate, rising 0.4% vs. expected 0.3% YoY gain, whilst the currently favoured core measure excluding food (there are signs of a shift to an ex-energy measure) was steady at 0.1%. Overall, Japan is a long way off from achieving its 2% inflation goal announced more than 2 years ago. Back then, they threw everything at it, but the impact has been negligible.

Sticking with inflation, data for the Eurozone will be released at 09:00 GMT today, with headline rate seen steady at 0.2% YoY on the flash estimate. Although inflation has been slow to react, we have seen better indicators on activity and lending of late, suggesting some impact from both the anticipation and the implementation of the ECB’s QE program. As such, there appears to be greater potential for euro gains on a stronger than expected number (validating recovery hopes) vs. losses on the back of a weaker figure. Elsewhere, note that the CAD will be keeping a wary eye on the GDP numbers at 12:30 GMT as it continues to flirt with the 1.30 level vs. the greenback.


Source link  
Profit-taking after big sell-off

There is a demand for profit-taking in the markets after powerful movements at the end of last week and a very aggressive trading start...

Hot August for currency markets

This August seems hot. Not only temperature but also currency market volatility is rising. The period of active vacations, which is accompanied by a decrease in volumes...

Dollar is close to its important levels

The demand for dollar, provoked by the fears of new US sanctions against a number of countries and expanding trade conflict with China push the American currency close...


Trump raises stakes in the trade war

Two opposite trends prevail in the global markets. Strong reporting of companies, including Apple indicators supports the demand in world...

USD grows on high GDP expectations

The single currency is traded near weekly lows against the dollar, getting under pressure after maintaining the soft tone of the ECB during the regular meeting...

Facebook failure obscured optimism

Yesterday the markets enjoyed a rare portion of good news on international trade. Trump and Juncker agreed not to introduce new tariffs for the period of negotiations...


Trump tosses dollar from highs

The dollar remained under pressure after the Trump's criticism about the strengthening of the national currency. Despite doubts that the influence of the president...

Oil hits 3-month lows

On Monday, the dynamics of oil was in the spotlight on a combination of negative factors by both the potential demand and the supply part. Asian markets...

Fed Monetary Policy Report to be released

This report is release twice a year and provides an insight into the conduct of monetary policy and economic developments and prospects for the future for the...


In the past 24 hours Bitcoin has gained 2.05% and reached $6546.299018. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -1.3466% and is now at $1.138. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -4.26% and is now at $311.961646283. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets89%
2FXTMFXTM87%
3HYCMHYCM85%
4FxProFxPro80%
5FIBO GroupFIBO Group78%
6FXCMFXCM73%
7AvaTradeAvaTrade68%
8HotForexHotForex67%
9Alfa-ForexAlfa-Forex66%
10XMXM66%
  


Share: