HFM information and reviews
HFM
96%
Octa information and reviews
Octa
94%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%

Markets in Details: 24 July 2019


24 July 2019

Eurozone manufacturing weakness


Germany posted a significantly weak Manufacturing PMI which showed the country’s manufacturing activity experienced a sharp contraction in July especially in the automotive sector. Europe’s largest economy is facing downward pressures from Brexit and trade frictions. The index dropped to 43.1 widely missing expectations of 45.1 and declining sequentially from the June reading of 47.6.  The latest PMI number caused eurozone sovereign bonds to rally and is expected to increase the odds of a rate cut by the ECB on Thursday.

France also posted weaker than expected Manufacturing PMI of 50 in July. Economists had predicted 51.6 for euro area’s second-largest economy. IHS said the weaker performance was attributable to softer new orders, lower sales at manufacturers and overall nervousness due to geopolitical tensions.

Overall eurozone PMI came in at 51.5 in July and the services data showed that growth in the services sector remains healthy for now.

Trade Talk Hopes


WTI crude strengthened to above $57 on Wednesday as trade negotiations are expected to continue with Chief Negotiator Robert Lighthizer and Treasury Secretary Steve Mnuchin set to travel to China Monday next week to attend the first face-to-face meeting since the May discussions.

100 days


The British pound is sitting at $1.25, near the bottom of the range of 1.20-1.44 for the currency since the UK voted to leave the EU. The current price suggests a sizeable amount of negative news has been priced in into the currency but that does not mean the only direction it can go is up as the new UK Prime Minister has 100 days to deliver what Theresa May could not in three years.

Boris Wins


UK will have a new Prime Minister on Wednesday after Boris Johnson won the Conservative Party leadership race by a 2-to-1 margin over Foreign Minister Jeremy Hunt. Johnson is expected to bring in a new team to deliver his promises, including a do-or-die Brexit at the end of October. Finance Minister Philip Hammond and Mr Hunt, the Foreign Minister, are both expected to leave their current ministerial posts over disagreement with Johnson on fundamental issues and Brexit.

Johnson’s next 100 days will be intensely scrutinised and he faces an uphill climb from the get-go. Brussells has indicated their unwillingness to accept any changes to Theresa May’s Brexit plan while senior conservative leaders are pushing against a hard-type Brexit.

Global growth revised lower


The IMF has revised its global growth outlook again and now expects the global economy to expand 0.1 percent lower, that is by 3.2% in 2019. The IMF noted risks are weighing heavily on the downside with weak trade prospects due to trade wars, Brexit concerns, and low inflation. The international fund now considers a hard Brexit to be a plausible outcome given Boris Johnson’s win today.

New debt ceiling


The White House and Congress has struck a deal to raise the $22tn debt ceiling until the middle of 2021, effectively removing the adverse possibility of a U.S. debt default before next year’s presidential election. The deal represented a compromise between both Democrats and Republicans which would enhance national security and middle class priorities and does not include any poison pills such as funding for a border wall with Mexico, termination of demand for the president’s tax returns or any other controversial proposals. The deal is expected to pass both houses and will be signed by President Trump within days.

Share: Tweet this or Share on Facebook


Related

Yen stabilizes as Japan ramps up intervention warning
Yen stabilizes as Japan ramps up intervention warning

Threats of FX intervention help yen to stabilize near three-decade lows. Dollar and stocks take a step back, Bitcoin jumps in anticipation of halving. Shortage of liquidity could be an important market theme this week.

26 Mar 2024

Stocks at fresh records even as dollar bounces back
Stocks at fresh records even as dollar bounces back

Wall Street leads rally in equity markets, fuelled by rate cut optimism. US dollar stages surprise rebound amid US exceptionalism. Pound slides on BoE's dovish tilt, yen steadies, PBOC loosens grip on yuan.

22 Mar 2024

Dollar rises as Fed enters spotlight, yen plummets
Dollar rises as Fed enters spotlight, yen plummets

US dollar gains as traders brace for hawkish Fed. Yen tumbles despite BoJ's historic decision. Loonie slides on cooler than expected Canadian inflation. Wall Street gains ahead of Fed, oil extends advance.

20 Mar 2024

BoJ hikes, scraps yield curve control, but yen slumps

BoJ ends negative rates and yield curve control in historic move, but yen can't catch a break as Ueda signals ongoing accommodative stance.

19 Mar 2024

Dollar recovers, equities stall after US data releases
Dollar recovers, equities stall after US data releases

Dollar stages comeback as US data fuels speculation of fewer Fed cuts. Stocks and Bitcoin take a step back, oil climbs after Ukraine drone attacks. Yen traders play the guessing game ahead of next week's rate decision.

15 Mar 2024

US PPI and retail sales data enter the limelight
US PPI and retail sales data enter the limelight

After hot CPI inflation, dollar awaits PPI and retail sales data. Yen on the back foot as BoJ March hike bets decrease - S&P 500 and Nasdaq pull back, gold rebounds

14 Mar 2024


Forex Forecasts

MultiBank Group information and reviews
MultiBank Group
84%
XM information and reviews
XM
82%
FP Markets information and reviews
FP Markets
81%
FXTM information and reviews
FXTM
80%
AMarkets information and reviews
AMarkets
79%
BlackBull information and reviews
BlackBull
78%

© 2006-2024 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.