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  • HFblogNews
    replied
    Date : 12th July 2017.

    MACRO EVENTS & NEWS OF 12th July 2017.


    FX News Today

    European Outlook: Asian stock markets were mixed, with Nikkei and ASX underperforming and heading south as the Dollar weakened ahead of Yellen’s testimony today. FTSE 100 futures are moving higher U.S. stock futures are mixed as markets remain in the ban of central bank comments. Yields rose again across Europe and with central banks eying exit trend occasional dovish comments are unlikely to provide more than a brief halt in the uptrends in yields. Today’s data calendar has U.K. labor market data as well as Eurozone May production numbers. Germany auctions a new 10-year Bund.

    US reports: revealed U.S. NFIB small business optimism index fell to 103.6 in June from 104.5 in May. It’s the lowest since the 98.4 in November. The index was as high as 105.9 in January, which was the best since the 106.1 print from December 2004. The all-time high is 107.4 from November 2004. The percentage of firms reporting plans to hire fell to 15% from 18%. On the other hand, U.S. JOLTS report showed job openings slumped 301k in May to 5,666k after rising 182k to 5,967k in April. The rate slid to 3.7% from 3.9%. But, hirings increased 429k to 5,472k, rebounding from the 261k drop to 5,043k. The rate improved to 3.7% from 3.5%. And quitters increased 177k to 3,221k after falling 94k to 3,044k. The rate inched up to 2.2% from 2.1%. The headline figure is disappointing, but the quit numbers, a Yellen favorite, should offset. Lastly, the U.S. wholesale report revealed a disappointing 0.5% May wholesale sales drop after a 0.3% (was 0.4%) April decline, though we saw a 0.4% May inventory rise that beat the 0.3% climb in the advance indicators report after a 0.4% April drop. The May sales drop mostly reflected a 7.8% price-led petroleum plunge, though weakness was evident across the durables data as well.

    BoE MPC member Broadbent kept mum on interest rates during a speech he delivered before the Scottish Council for Development and Industry earlier. Broadbent was among the majority of MPC members to vote for unchanged policy at the June meeting, which had been a surprise for markets as three of his colleagues voted for a 25 bp hike in the repo rate. He spoke mostly about his view on Brexit risks, concluding that “put simply, a significant curtailment of trade with Europe would force the UK to shift away from producing the things it’s been relatively good at, and therefore tends to export to the EU, and towards the things that it currently imports and is relatively less good at.” Broadbent argued that this, at least initially, would both lower income as trade shifts away from services exports, which the UK has a comparative advantage in, while raising costs as production shifted more towards food and machinery, areas where the UK has a comparative disadvantage. Sterling took a 15-20 pip tumble versus the G3 currencies, with markets appearing to take Broadbent’s words as meaning that he won’t vote for a tightening at the next MPC meeting on August 3.

    Fed Governor Brainard: it’s “appropriate soon” to start balance sheet shrinkage, she said in her speech on Cross-Border Spillovers of Balance Sheet Normalization. That’s consistent with the messages from the June policy state, the minutes, and the SEP, though it’s important that the dovish governor echoed that sentiment. The Fed will continue to assess inflation, especially in light of the recent softening, before deciding on the rate path. Policymakers want to move cautiously on further rate increases. She also noted that the currency markets could be more sensitive to the Fed’s rate actions than on the balance sheet.

    Main Macro Events Today

    UK Labor Data -The U.K. labour market report for May is expected to show the unemployment rate holding steady at the cycle low of 4.6%. A key focus for policymakers and the markets alike, will be average household earnings, as any fresh signs of weakness will provide an offset to the hawkish stance of the BoE.

    Fed Yellen – Yellen’s testimony today before the House Financial Services Committee and the Senate Banking Committee (Thursday) will highlight .Her comments will be scrutinized for any sign that the timing could be accelerated, with an announcement on the portfolio at the upcoming July FOMC, with the start of the shrinkage in September. Or given the weaker trend in inflation, we will listen to hear any indication the slowdown in inflation is giving her cold feet on further normalization, pushing off action on the balance sheet and rate hikes further into year end, or even 2018.

    BOC Statement – The Bank of Canada’s policy announcement, Monetary Policy Report and press conference comprise the main event today. A hawkish U-turn by the Bank via several recent appearances and interviews by Governor Poloz and Senior Deputy Governor Wilkins have left a widespread expectation that the Bank will increase rates by 25 basis points to 0.75%.

    Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

    Please note that times displayed based on local time zone and are from time of writing this report.

    Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.

    Visit Website to READ more Market news.


    Andria Pichidi
    Market Analyst
    HotForex


    Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

    Leave a comment:


  • HFblogNews
    replied
    Date : 11th July 2017.

    MACRO EVENTS & NEWS OF 11th July 2017.


    FX News Today

    European Outlook: Equity markets remained in a positive mood in Asia overnight, with Hong Kong stocks heading for another gain of more than 1%, led by insurers and banks. The Nikkei is up 0.57%, with exporters underpinned by a weaker Yen. U.K. and U.S. futures are also moving higher, pointing to another positive session in Europe, where Eurozone markets in particular found solace yesterday in ECB comments suggesting that the ECB won’t tweak its forward guidance again until September. Oil prices are slightly higher on the day and the front end Nymex future is trading at USD 44.48 per barrel. The European calendar remains pretty light. Released overnight U.K. BRC like for like retail sales came in much better than expected at 1.2%. Still to come Italy releases industrial production data for May.

    US reports: U.S. consumer credit surged $18.4 bln in May, following the upwardly revised $12.9 bln April gain (was $8.2 bln). Non-revolving credit continued to lead the strength, rising $11.0 bln versus $11.8 bln previously. Revolving credit increased $7.4 bln after edging up $1.2 bln in April. For Q1, credit climbed $45.5 bln and was up $57.8 bln in Q4. Also, U.S. Fed’s Labor Market Conditions index rose 1.5 points in June following an upwardly revised 3.3-point May increase (was 2.3) and a 3.8-point April jump. This is a 13th straight monthly gain. The index is heavily weighted by the unemployment rate, and the rise to 4.357% from 4.294% in Friday’s jobs report was a factor behind the gain. The LMCI, a favorite of chair Yellen, is a composite indicator comprised of 19 already released variables and corroborates the view of a solid labor market.

    ECB’s: ECB seen steady over the summer. Comments from Bank of France governor Villeroy over the weekend seem to confirm that the central bank will refrain from policy and guidance changes at the July meeting and wait until September, when the next set of forecasts are due to decide on whether to tweak its stimulus settings. At the same time ECB Chief Economist Praet said in a newspaper article that “we still need a long period of accommodative policy”, in what looks like a fresh attempt to calm the nerves of investors, after some hawkish comments saw Eurozone yields rising last week. Yesterday we also saw a release of Eurozone Sentix Investor confidence which fell back in July, with the total reading declining to 28.3 from 28.4 in the previous month. The indicator for the current situation still improved to 37.3 from 36.0, but the expectations index fell back to 19.8 from 21.0, the first decline since February.

    Germany: Germany posted a sa trade surplus of EUR 20.3 bln in May, slightly higher than the EUR 19.7 bln in the previous month. Exports rose 1.4% m/m on a seasonally adjusted basis, up from 0.9% m/m in April, while import growth stagnated at 1.2% m/m. The three months accumulated figure eased slightly, is is now below the total for Q1, which suggests trade is not making much of a contribution for Q2 GDP. Indeed, accumulated data for the first five months of the year show the total current account surplus falling back to EUR 98.0 bln from EUR 110.3 bln last year, while the trade surplus narrowed to EUR 100.1 bln from EUR 104.8 bln in the corresponding period 2016. Fresh signs then that the recovery this time around is not so much driven by external demand, but consumption and the domestic economy.

    Main Macro Events Today

    UK MPC Speeches – MPC Member Haldane is due to speak today at the ‘Essentials of Numeracy’ launch event, in London. Today as well, MPC Member Broadbent Speaks in Aberdeen at the Scottish Council for Development and Industry.

    Canada Housing Starts – Housing starts are seen improving to a 201.5k pace in June from the 194.7k clip in May.

    US NFIB & JOLTS – The June NFIB small business survey is on tap today, along with a Yellen favorite, JOLTS. NFIB expected to stay quite stable at 104.4 from 104.5 last time, while JOLTS job Openings expected to fall at 5.89M from 6.044M in April.

    Fedspeak – Governor Brainard’s remarks on monetary policy at 12:00 ET will be closely monitored. She’s a voter and one of the more dovish on the Committee, though she has tacitly supported the Fed’s tightening actions.

    Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

    Please note that times displayed based on local time zone and are from time of writing this report.

    Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.

    Visit Website to READ more Market news.


    Andria Pichidi
    Market Analyst
    HotForex


    Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

    Leave a comment:


  • HFblogNews
    replied
    Date : 10th July 2017.

    MACRO EVENTS & NEWS OF 10th July 2017.


    FX News Today

    The FOMC’s decision to outline its balance sheet unwind last month kicked off the beginning of the end for the central banks’ emergency QE programs. Other central banks, including the BoE, ECB, and BoC have been following suit now too. The shift in tone was surprising given the downtrend in global inflation pressures and this will be a challenge going forward. But central bank-speak suggests policymakers are willing to look through that dynamic, especially as growth remains relatively solid. Right on cue, inflation and growth data will dominate global calendars, while Fed chair Yellen will give her semi-annual Humphrey Hawkins testimony.

    United States: U.S. markets will have a lot on their plates this week as they continue to assess the June jobs data, global developments in the aftermath of the G20 meeting, while looking ahead to Fed chair Yellen’s Humphrey Hawkins testimony and a batch of key data on inflation, sales, and production. There are several important data releases on the calendar, though not until Friday, which could help clarify the near-term picture for the Fed and the markets. The June CPI report will be the focus, with the headline expected to fall 0.2% thanks to the drop in energy prices, while the core edges up 0.1%. The annual pace should slow to 1.5% y/y from 1.9% y/y on the overall reading, while the core remains steady at 1.7% y/y. The Fed remains disappointed by the sluggishness, but the comments from the June minutes that the slowdown is a function of “idiosyncratic” factors suggests officials will continue to look through the data and concentrate more on economic growth. June retail sales will be the other report of note and are expected to post an unchanged reading overall .Other data over the week includes consumer sentiment from the University of Michigan (Friday), the June NFIB small business survey is on tap (Tuesday), along with a Yellen favorite, JOLTS (Tuesday). Jobless claims and PPI, along with the June budget, are due (Thursday).

    Fedspeak: Yellen’s testimony before the House Financial Services Committee (Wednesday) and the Senate Banking Committee (Thursday) will highlight. Her comments will be scrutinized for any sign that the timing could be accelerated, with an announcement on the portfolio at the upcoming July FOMC, with the start of the shrinkage in September. Or given the weaker trend in inflation, we will listen to hear any indication the slowdown in inflation is giving her cold feet on further normalization, pushing off action on the balance sheet and rate hikes further into year end, or even 2018. Fedspeak from various others on the Committee will be of interest too. SF Fed’s Williams speaks from Australia (Monday 23:05 ET). Governor Brainard’s remarks on monetary policy (Tuesday 12:00 ET) will be closely monitored too. On the other end of the hawk-dove spectrum is KC’s George who will discuss the balance sheet and the economic outlook (Wednesday 14:15ET). Chicago Fed’s Evans (a voter) also will speak on monetary policy and the economy (Thursday11:30 ET). The hawkish Dallas Fed’s Kaplan attends and speaks at a conference on monetary policy (Friday 09:30 ET). The Beige Book (Wednesday) will be overlooked in favor of Yellen’s testimony, and won’t deviate from the moderate growth outlook.

    Canada: In Canada, the Bank of Canada’s policy announcement, Monetary Policy Report and press conference (Wednesday) comprise the main event this week. A hawkish U-turn by the Bank via several recent appearances and interviews by Governor Poloz and Senior Deputy Governor Wilkins have left a widespread expectation that the Bank will increase rates by 25 basis points to 0.75%.The data calendar is lean this week. Housing starts (Tuesday) are seen improving to a 200k pace in June from the 194.7k clip in May. The June Teranet/National HPI (Wednesday) and the May new home price index are also due this week.

    Europe: European bond yields continue to rise, while Eurozone spreads are widening as ECB officials continue to mull exit strategies, despite the fact that the Bank still has an easing bias on QE and that tapering won’t start until early next year. This week’s data round is unlikely to settle the argument over inflation one way or the other as there’s unlikely to be an major revisions to final price data for June. German HICP (Tuesday) is expected to be confirmed at 1.5% y/y, the French reading (Tuesday) at just 0.8% y/y, the Italian at 1.2% y/y and finally the Spanish at 1.2%. Those would all be sufficiently soft to back the doves’ arguments who maintain that the inflation remains too low and that the economy still needs a substantial degree of monetary support. Meanwhile, the hawks can find solace in May production numbers, which are expected to rise 1.2% m/m, more than doubling the 0.5% pace from April, supported by very strong German and French numbers. The data calendar also has German and Eurozone trade numbers. Germany issues 10-year Bunds (Wednesday).

    UK: UK data has been flagging an onset of a stagnation in economic growth, with last week bringing unexpected weakness in production, trade, and house prices, and in all three of the PMI sector surveys. The new minority government, meanwhile, has managed to survive the early weeks of its existence, and negotiations with EU counterparts on Brexit will continue as planned. The “Great Repeal” bill will start to be debated in the coming weeks. The calendar this week is relatively quiet, highlighted by June labor data (Wednesday). The report is expected to show the unemployment rate holding steady at the cycle low of 4.6% in May. A key focus for policymakers and the markets alike, will be average household earnings, as any fresh signs of weakness will provide an offset to the hawkish stance of the BoE. The BRC June report on retail sales is also due (Monday), which will also be scrutinized for signs of weakness as incomes have tipped into negative growth in real terms in recent months.

    Japan: In Japan, June PPI (Wednesday) is forecast slipping to 1.9% y/y from 2.1%, while the May tertiary index (Wednesday) is expected to fall 0.5% after rising 1.2% in April. Revised May industrial production will be released on Friday.

    China: The June trade report (Thursday) should see the surplus widen to $42.0 bln from $40.8 bln. June retail sales are set for a Saturday release, and are forecast up 10.5% y/y from 10.7% previously.

    Australia: In Australia, the pickings are slim this week. Top tier economic data is limited to housing investment (Tuesday), expected to bounce 1.0% m/m in May after the 1.9% drop in April. The Reserve Bank of Australia has nothing scheduled this week. The next event is the July 17 release of the July meeting minutes.

    New Zealand: New Zealand’s calendar has June retail card spending (Tuesday), which we expect will rebound 0.5% after the 0.4% drop in May. REINZ house sales for June are due out during the week. The Reserve Bank of New Zealand’s next meeting is on August 10. No change is expected to the current 1.75% rate through year-end.

    Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

    Please note that times displayed based on local time zone and are from time of writing this report.

    Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.

    Visit Website to READ more Market news.


    Andria Pichidi
    Market Analyst
    HotForex


    Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

    Leave a comment:


  • HFblogNews
    replied
    Date : 7th July 2017.

    MACRO EVENTS & NEWS OF 7th July 2017.


    FX News Today

    European Outlook: Asian stock markets headed south, following sell offs in Europe and on Wall Street yesterday. Risk aversion and concerns about the withdrawal of monetary stimulus continue to weigh on markets as yields spike after hawkish comments from ECB and BoE yesterday. FTSE 100 futures are in the red while U.S. futures are slightly higher. Bund yields are at the highest level since early 2016 and the 10 year Gilt closed above 1.3% as markets adjust to to the fact that global central bank support has peaked. Today’s calendar has industrial production data U.K. as well as U.K trade data, but markets will be looking ahead to U.S. Payroll data in the PM session.

    US reports: revealed modest undershoots for trade and job market indicators but an upside June ISM-NMI surprise that left a neutral read for the economy on net. The trade deficit narrowed to $46.5 bln in May to leave a gap that was just $0.2 bln wider than indicated by the “advance” report, with service-led upside surprises in both exports and imports. For claims, we saw a 4k rise to 248k that bucked the usual auto retooling downdraft, though a claims drop is likely next week. ADP posted a lean 158k June rise, though we’ve seen a solid 218k average ADP increase thus far in 2017 that signals upside risk for our 185k June nonfarm payroll estimate. The ISM-NMI popped to 57.4 in June to leave that measure just below the 16-month high of 57.6 in February, with a firm 57.4 ISM-adjusted reading and a solid 55.8 employment index figure.

    Canada: Yesterday’s reports continued the run of upbeat data, but we remain unconvinced that the Bank will hike rates next week. Base case remains for a 25 bp increase in October. Canada’s May trade report bodes well for Q2 GDP, as a 2.0% m/m gain in export volumes followed the 1.3% rise in April. Import volumes expanded 1.7% in May after the 0.3% gain in April. The mix of faster export growth relative to import growth in the May trade report is consistent with projection for a positive contribution from net exports to Q2 GDP after the hefty drag exerted in Q1. Hence, while Canada’s economic data remains strongly suggestive of a sustained uptrend in activity that will eventually deliver the return to full capacity and 2% inflation that is the Bank’s goal, the economy is not wildly outpacing the Bank’s scenario from the April MPR.

    ECB’s: Weidmann joined the chorus of more hawkish sentiment as he noted that the recovery in Europe is opening the door to ECB normalization. This isn’t a surprise from the well known hawk, who was discussing the “Future of the Euro” with Austria’s Nowotny. Weidmann added that the timing of action and the pace of normalization is dependent on the sustainability of inflation. “For the credibility of monetary policy, it is decisive that the expansionary monetary policy is ended when it becomes necessary from a price-stability perspective.” The threat of downward price spirals has retreated, he said, lessening the need for the emergency bond purchase tactic to remain in place. However, he concluded that “for the moment, an expansionary monetary policy is justified to support the economic recovery and thus inflation,” though there are “different opinions on how much we need to step onto the stimulus accelerator and which instruments we should use.

    Germany: Industrial production stronger than expected. Production rose 1.2% m/m in May, much more than anticipated after the correction in orders data the previous month. Energy production remained strong, while manufacturing growth picked up after two weak month, which helped to compensate for the correction in construction production. The annual rate improved to 5.0% y/y and data confirm expectations for a strong second quarter GDP growth rate, leaving Germany on course for an ongoing robust recovery. The euro remain underpinned following the fresh bout of hawkish-leaning remarks from ECB policymakers yesterday, which has been followed by an above-forecast 1.2% rise in German industrial production, which was well up on the median expectation for 0.3%

    Main Macro Events Today

    UK Man. Production & BOE – Production and trade numbers for May are also up today, where manufacturing output expected ticking up by 0.5% m/m and by 0.2% y/y. Also BOE Governor Carney is due to speak today regarding the economic impact of climate change at the G20 meeting.

    U.S. Employment – June employment data is out today and should post a 180k headline for the month following 138k in May and 174k in April. The unemployment rate should hold steady at 4.3% from May, down from 4.4% in April.

    Canadian Employment Data – Employment is projected to grow 20.0k in June after the 54.5k surge in May, as Canada’s labour market continues to tighten. Unemployment is expected at 6.6% in June, matching the 6.6% in May. The Ivey PMI is seen rising to 55.0 in June from 53.8 on a seasonally adjusted basis, which would leave the index above 50.0 for the thirteenth consecutive month.

    Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

    Please note that times displayed based on local time zone and are from time of writing this report.

    Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.

    Visit website to READ more Market news.


    Andria Pichidi
    Market Analyst
    HotForex


    Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

    Leave a comment:


  • HFblogNews
    replied
    Date : 6th July 2017.

    MACRO EVENTS & NEWS OF 6th July 2017.


    FX News Today

    European Outlook: Asian stock markets are narrowly mixed, with Japan and Hang Seng down as the stronger Yen weighed on exporters and lower oil prices hit energy producers. the front end Nymex futures picked up a bit after supply concerns hit prices once again, but remains below USD 46 per barrel. The ASX is managing marginal gains. FTSE 100 futures are also marginally higher, despite the rise in Sterling after BoE’s Saunders warned of rate hikes ahead. This should continue to see Gilts underperforming versus Bunds, although a stronger Pound also reduces inflation risks going ahead. In the Eurozone yields also continue to trend higher as the ECB is cautiously heading for exit steps, and while the 10-year Bund closed slightly lower yesterday, Italian and Spanish bond as well as stock markets underperformed, and market jitters will back the doves at the council. Today’s calendar has German manufacturing orders at the start of the session as well as ECB minutes and Swiss inflation data.

    FOMC minutes showed most officials said “idiosyncratic factors” were responsible for the softer trend in inflation, though several were concerned that the progress on inflation may have slowed. A couple of policymakers, however, saw rising inflation risk from the “undershooting of the jobless rate.” They also noted some financial market conditions had eased even as policy accommodation was being reduced. Committee members were divided over when to begin the balance sheet unwind, expressing a range of views. There were no clear insights in the minutes to better assess the timing of the balance sheet unwind. But, given the Committee decided to announce the balance sheet details at this meeting suggests the start could begin, as Yellen said, “sooner.” The Fed continues to believe a well telegraphed, and gradual approach to shrinking the balance sheet will limit market reaction. The Fed is also expected to delay rate hikes when it initiates the shrinkage of the portfolio, and that will give the data time to improve and hence support views that it’s idiosyncratic factors weighing. The minutes didn’t materially add to the markets’ body of knowledge on the normalization path.

    US reports: Disappointing U.S. factory goods data, with price-led May declines for shipments, orders, and inventories of nondurable goods after small downward April revisions, alongside small upward adjustments in the available durables data for orders, shipments, and equipment, though with weaker inventories. The May data still showed a transportation and defense-led orders drop with lean inventories and resilient shipments. Inventories have yet to recover from the big 2015-2016 petro-hit, beyond last year’s Q3-Q4 bounce that was mostly reversed in Q1.

    Eurozone: services PMI revised up to 55.4 with the final reading for June from 54.7 in the preliminary estimate, but still down from 56.3 in May. This saw the composite PMI revised up to 56.3 from 55.7 and versus 56.8 in May. Despite the drop in June, Markit reported that the Eurozone economy enjoyed its best quarter for just over six years in Q1 and while output growth slowed slightly in June, “continued robust inflows of new work and elevated business confidence kept the pace of job creation among the best seen over the past decade”. The average reading over the second quarter was the best since Q1 2011. Good news then that will back the ECB’s increasingly optimistic view of the economy, although with inflation still low and key players like Draghi and Praet insisting that this is largely thanks to the ECB’s expansionary policy, the central bank is not ready yet to commit to QE tapering. The UK June services PMI missed expectations slightly, dipping to a 53.4 headline reading after 53.8 in May.

    Main Macro Events Today

    ECB minutes – ECB Monetary Policy Meeting Accounts have be scheduled for 11:30 GMT today.

    U.S. Initial Jobless Claims – Initial claims data for the week of July 1 is out today and a dip to 232k is expected from 244k last week and 242k in the week prior. Claims are always volatile this time of year as we move through auto sector retooling season and this year there are additional risks from the big build up in auto inventories.

    Fedspeak – SF Fed’s Williams (non-voter) will be in Australia (03:45 ET) and Governor Powell is set to discuss housing finance reform from Washington (10:00 ET), while VC Fischer will speak from Washington on “Government Policy and Labor Productivity” (11:00 ET). Focus will then turn to Fed Chief Yellen from next week’s policy testimony before the House next Wednesday (10 ET), as her Q&A will follow-up her written testimony’s public release this Friday (11 ET).

    Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

    Please note that times displayed based on local time zone and are from time of writing this report.

    Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.

    Visit Website to READ more Market news.


    Andria Pichidi
    Market Analyst
    HotForex


    Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

    Leave a comment:

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