Analysis and Recommendations: The EUR/USD declined 45 points to trade at 1.1113 giving back a good portion of yesterday’s gains. The euro gained over 100
The EUR/USD declined 45 points to trade at 1.1113 giving back a good portion of yesterday’s gains. The euro gained over 100 points after a deal was concluded with Greece and Chinese markets kept traders on edge. The pair is expected to continue its adjustment phase and give back most of its gains.
Global markets rallied Thursday after two days of sharp declines following China’s unexpected move to weaken its currency. In Europe, the Stoxx Europe 600 index gained 1.7% midmorning. Germany’s DAX index rose 1.6%, while France’s CAC 40 index was up 1.9%.
Asian bourses were higher across the board and local currencies also regained some ground after a recovery in U.S. stock markets late Wednesday. China’s Shanghai Composite Index closed 1.8% higher, while Japan’s Nikkei 225 index gained 1.0%.
U.S. stock futures indicated a 0.2% opening gain for the S&P 500. Changes in futures aren’t necessarily reflected in market moves after the opening bell. “Markets over the last couple of days were overreacting to what I would argue was quite a healthy move from the Chinese authorities to move toward a more freely floating exchange rate regime,” said Alan Maudie, head of investment strategy at Société Générale Private Banking, which oversees €117 billion in assets.
The dollar was moderately higher against the euro Thursday as the Chinese central bank’s continued effort to guide the yuan lower was met with a milder reaction than previous sessions.
Resource-related, risk-sensitive currencies such as the Australian dollar also showed more moderate reaction than the wide fluctuations seen after China’s decision to devalue its tightly controlled currency jolted global financial markets earlier this week.
FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.
Today’s economic releases:
Cur. |
Event |
Actual |
Forecast |
Previous |
|||
NZD |
Business NZ PMI (Jul) |
53.5 |
|
55.2 |
|
||
GBP |
RICS House Price Balance (Jul) |
44% |
42% |
40% |
|
||
AUD |
RBA Assist Gov Kent Speaks |
|
|
|
|
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EUR |
German CPI (MoM) (Jul) |
0.2% |
0.2% |
0.2% |
|
||
EUR |
Spanish CPI (YoY) (Jul) |
0.1% |
0.1% |
0.1% |
|
||
EUR |
Spanish HICP (YoY) (Jul) |
0.0% |
-0.1% |
-0.1% |
|
||
CHF |
PPI (MoM) (Jul) |
-0.3% |
-0.2% |
-0.1% |
|
||
EUR |
Account of Monetary Policy Meeting |
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|
|
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Upcoming Economic Events that you should be monitoring:
Friday, August 14, 2015
Cur. |
Event |
Actual |
Forecast |
Previous |
|||
NZD |
Core Retail Sales (QoQ) |
|
0.7% |
2.9% |
|
||
EUR |
German GDP (QoQ) (Q2) |
|
0.5% |
0.3% |
|
||
EUR |
Core CPI (YoY) (Jul) |
|
1.0% |
1.0% |
|
||
EUR |
CPI (MoM) (Jul) |
|
-0.6% |
0.0% |
|
||
EUR |
GDP (QoQ) (Q2) |
|
0.4% |
0.4% |
|
||
USD |
PPI (MoM) (Jul) |
|
0.1% |
0.4% |
|
||
CAD |
Manufacturing Sales (MoM) (Jun) |
|
2.1% |
0.1% |
|
||
USD |
Industrial Production (MoM) (Jul) |
|
0.3% |
0.3% |
|
||
USD |
Michigan Consumer Sentiment (Aug) |
|
93.5 |
93.1 |
Government Bond Auctions
Date Time Country
Aug 13 11:10 Italy Auctions BTPs/CCTeus
Aug 19 11:30 Germany Eur 5bn Sep 2017 Schatz
Aug 19 11:03 Sweden Holds bond auction
Aug 20 10:30 Spain Auctions Bonos/Obligaciones
Aug 20 11:30 UK Auctions 4.25% 2036 Gilt
Aug 21 17:30 Italy Announces details of CTZ/BTPei on 26 Aug