Menu

Search

  |   Market Roundups

Menu

  |   Market Roundups

Search

Americas Roundup: Dollar hits lowest since September, Euro touches more than 1-year high vs greenback, Wall Street ends mixed, Oil climbs as firm demand absorbs ample supply-July 19th, 2017


Market Roundup

• US Import Prices MM Jun -0.2%, -0.2% forecast, -0.1% previous.

• US Export Prices MM Jun -0.2%, -0.0% forecast, -0.5% previous.

• US Redbook MM w/e -1.3%, -1.1% previous.

• US Redbook YY w/e 2.0%, 2.4% previous.

• US NAHB Housing Market Index Jul 64, 67 forecast, 66 previous.

• Trump Jr., ex-campaign head given nod to testify in Congress –Senator.

• Republican push to overhaul or repeal healthcare law collapses in U.S. Senate.

• US puts new sanctions on Iran over ballistic missile program.

• ECB: Credit standards eased in Q2 for business, household loans, broadly unchanged for consumer credit.

• UK inflation surprises with slowdown, easing pressure on Bank of England.

• Less not more is key to efficient FX markets, Deutsche Bank finds.

Looking Ahead - Economic Data (GMT)    

• 23:00 Japan Reuters Tankan DI Jul, 26 previous

Looking Ahead - Events, Other Releases (GMT)

• Bank of Japan holds Monetary Policy Meeting- Tokyo


Currency Summaries

EUR/USD is likely to find support at 1.1500 levels and currently trading at 1.1558 levels. The pair made session high at 1.1583 and hit lows at 1.1542 levels. Euro rose against the dollar on Tuesday as dollar was weighed down after the collapse of President Donald Trump's latest healthcare bill eroded confidence in his ability to legislate to boost growth. Republican senators' effort to pass their own healthcare overhaul bill collapsed late on Monday, stoking doubts over the likelihood that Trump's pro-growth agenda would come to fruition. Traders also remained doubtful the Federal Reserve would be able to raise interest rates again this year, while other central banks including the European Central Bank and Bank of England have signaled a more hawkish bent toward tightening policy. The dollar index, which measures the greenback against a basket of six major rivals, touched its lowest since early September of 94.476. The euro was up 0.66 percent to $1.1555 against the dollar.

GBP/USD is supported in the range of 1.2964 levels and currently trading at 1.3040 levels. It reached session high at 1.3061 and dropped to session low at 1.3003 levels. Sterling declined against the dollar on Tuesday as Sterling came under selling pressure after data showed British inflation unexpectedly slowing for the first time since October last year, lowering expectations of an interest rate increase this year. Consumer prices rose by 2.6 percent compared with a year earlier, the Office for National Statistics said on Tuesday, down from a nearly four-year high of 2.9 percent in May. Economists had expected the rate to remain unchanged. The fall was the sharpest between any two months since February 2015, largely reflecting a fall in global oil prices, and there were signs of slowing price pressure in factories. Sterling lost more than half a cent in response to the numbers, trading as low as $1.3005 after touching a 10-month high of $1.3126. it was last trading at $1.3041.

USD/CAD is supported at 1.2564 levels and is trading at 1.2641 levels. It has made session high at 1.2673 and lows at 1.2579 levels. The Canadian dollar strengthened against its U.S. counterpart on Tuesday as Canadian dollar was boosted by higher oil prices, while the greenback lost ground against a basket of major currencies. The U.S. dollar sank to a 10-month low as the latest collapse of President Donald Trump's efforts to deliver a new healthcare bill added to worries about the pace of U.S. growth. Prices of oil, one of Canada's major exports, rose as demand soaked up some of the surplus supplies from Organization of the Petroleum Exporting Countries and the United States. Gains for the loonie came after the Bank of Canada raised interest rates last week for the first time in seven years and signaled it will hike again over the coming months. The currency has gained nearly 7 percent since the central bank turned hawkish in June. The Canadian dollar was last trading at C$1.2621 to the greenback, up 0.59 percent. The currency's weakest level was C$1.2702, while it touched its strongest since May 2016 at C$1.2581.

AUD/USD is supported around 0.7788 levels and currently trading at 0.7915 levels. It hit session high at 0.7945 and made session lows at 0.7881 levels. The Australian dollar surged against U.S. dollar on Tuesday as Australian dollar was boosted by an upbeat economic outlook from the country's central bank that led investors to narrow the odds on a hike in interest rates. The Aussie got boost from minutes of the Reserve Bank of Australia's (RBA) last policy meeting painted a more optimistic view on the economic outlook. Minutes of the Reserve Bank of Australia's (RBA) July meeting showed policy makers remained watchful on risks to jobs and housing, suggesting they were in no hurry to lift interest rates anytime soon. The mood was clearly brighter, with the word "positive" appearing repeatedly in the five-page statement. Since the RBA's last meeting on July 4, the Aussie has rocketed to a two-year high, orbiting at 79 U.S. cents, a level that will be highly unwelcome to policy makers in the face of weak inflation.

Equities Recap

European shares fell on Tuesday after disappointing Ericsson and Lufthansa earnings, while scaled-back expectations of monetary tightening by major central banks dented financial stocks.

UK's benchmark FTSE 100 closed down by 0.2 percent, FTSEurofirst 300 ended the day down by 1.09 percent, Germany's Dax ended down by 1.2 percent, and France’s CAC finished the day down by 1 percent.

Major stock indexes were mixed on Tuesday, as Netflix's rally boosted the Nasdaq Composite to a record high while Goldman Sachs weighed on the Dow, with earnings taking investors' focus.

Dow Jones closed down by 0.24percent, S&P 500 ended up 0.06 percent, Nasdaq finished the day up by 0.46 percent.

Treasuries Recap 

U.S. Treasury yields fell on Tuesday, as investors grew cautious about the latest political drama in Washington around healthcare legislation, with weak economic data adding to the uncertainty about the pace of future interest rate hikes by the Federal Reserve.

U.S. 30-year bonds yielded 2.854 percent, from 2.893 percent on Monday. Those yields earlier touched a two-week low of 2.849 percent.

U.S. two-year yields were down at 1.351 percent from Monday's 1.36 percent.

The yield curve continued to flatten on Tuesday, with the spread between five-year and 30-year yields narrowing to 103.50 basis points.

Commodities Recap

Gold prices hit a more than two-week high on Tuesday, supported by expectations of stronger demand from the physical market and as the dollar fell on fading prospects of an imminent increase in U.S. interest rates.

Spot gold was up 0.7 percent at $1,242.41 an ounce by 2:15 p.m. EDT (1815 GMT), having touched $1,244.30, its highest since June 30. U.S. gold futures settled 0.7 percent to $1,241.90.

Oil prices rose slightly on Tuesday as Saudi exports fell and solid demand soaked up some of what is seen as an oversupplied market, but Ecuador's decision to opt out of a supply reduction pact complicated the outlook for the OPEC-led cut agreement.

Benchmark Brent crude settled up 42 cents to $48.84 a barrel, while U.S. light crude oil settled up 38 cents to $46.40.
 

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.