U.S. data was mixed yesterday. The ADP Non- farm Employment Change was worse than expected but GDP increased by an impressive 4%. The data spurred demand for the U.S. Dollar as many investors then expected a positive FOMC Statement. During the meeting a further $10 billion was cut from the quantitative easing, bringing the total to $25 billion/ month. The statement, however, did not meet expectations. Yellen stressed that the labour market was slacking and that wages are still too low. Consequently, we can infer that interest rates will not be increased soon. Following the dovish tone, U.S. stocks finished mixed. The S&P 500 closed 0.01% higher and the Dow Jones lost 0.19%. Asian markets were also mixed. The Hang Seng gained 0.1%, trading near a 7 year high, as direct trading between Shanghai and Hang Seng should be introduced in October. The Nikkei lost 0.16% as the Yen strengthened against the U.S. Dollar, trading at 102.71. European markets are lower today after Eurozone inflation came out below expectations at 0.4%. Currently, the FTSE 100 is 0.24% lower, CAC 40 is 0.72% lower and the DAX is 1.01% lower.
WTI Crude declined yesterday despite the EIA reporting that inventories declined by 3.7 million barrels. Losses came as the Dollar headed for the highest gain against the Euro since February. Increased sanctions against Russia have also done little to support the price. Today, traders should focus on labour data from the U.S. Gold traded choppy after a mixed outlook for the U.S. Positive economic data is bullish for the Dollar and bearish for Gold and as the U.S. economy continues to improve the metal has lost its shine. The main event for Gold will be the NFP report which will be released tomorrow and it is doubtful we will see much movement before then.
Today’s Main Events:
09.00 GMT: EUR – CPI – measures the change in the price of goods and services from the perspective of the consumer.
12.30 GMT: CAD – GDP – measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy.
12.30 GMT: USD – Initial Jobless Claims – measures the number of individuals who filed for unemployment insurance for the first time during the past week
13.45 GMT: USD – Chicago PMI – determines the economic health of the manufacturing sector in Chicago region.
July 31, 2014 – Daily Market News
Today’s Hot Assets: CAD, USD
U.S. data was mixed yesterday. The ADP Non- farm Employment Change was worse than expected but GDP increased by an impressive 4%. The data spurred demand for the U.S. Dollar as many investors then expected a positive FOMC Statement. During the meeting a further $10 billion was cut from the quantitative easing, bringing the total to $25 billion/ month. The statement, however, did not meet expectations. Yellen stressed that the labour market was slacking and that wages are still too low. Consequently, we can infer that interest rates will not be increased soon. Following the dovish tone, U.S. stocks finished mixed. The S&P 500 closed 0.01% higher and the Dow Jones lost 0.19%. Asian markets were also mixed. The Hang Seng gained 0.1%, trading near a 7 year high, as direct trading between Shanghai and Hang Seng should be introduced in October. The Nikkei lost 0.16% as the Yen strengthened against the U.S. Dollar, trading at 102.71. European markets are lower today after Eurozone inflation came out below expectations at 0.4%. Currently, the FTSE 100 is 0.24% lower, CAC 40 is 0.72% lower and the DAX is 1.01% lower.
WTI Crude declined yesterday despite the EIA reporting that inventories declined by 3.7 million barrels. Losses came as the Dollar headed for the highest gain against the Euro since February. Increased sanctions against Russia have also done little to support the price. Today, traders should focus on labour data from the U.S. Gold traded choppy after a mixed outlook for the U.S. Positive economic data is bullish for the Dollar and bearish for Gold and as the U.S. economy continues to improve the metal has lost its shine. The main event for Gold will be the NFP report which will be released tomorrow and it is doubtful we will see much movement before then.
Today’s Main Events:
09.00 GMT: EUR – CPI – measures the change in the price of goods and services from the perspective of the consumer.
12.30 GMT: CAD – GDP – measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy.
12.30 GMT: USD – Initial Jobless Claims – measures the number of individuals who filed for unemployment insurance for the first time during the past week
13.45 GMT: USD – Chicago PMI – determines the economic health of the manufacturing sector in Chicago region.
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