Canada's Dollar reached the weakest level in nearly two months following the figures indicating the economy growth is underperforming that of U.S. The Loonie dropped 0.3% to C$1.0930 per U.S. Dollar, the lowest level since June 9th. The Canadian Dollar slipped for the first month since January despite the fact that Canadian GDP grew 2.3% from the year earlier.
Brasil's Real experienced the largest decline among global currencies with Argentina missing a bond payment. The Real saw the largest drop amidst the 16 major currencies as it fell 0.8% against the Greenback to 2.2636. Moreover, since Argentina is a strong Brazilian trade partner and Brazil's budget deficit is a concern the recent events could foresee a further decline.
China's manufacturing gauge increased in July at the fastest pace in nearly two years, showing that economic growth is getting stronger. PMI was at 51.7, exceeding expectations of 51.4, while a gauge for smaller manufacturers in China's PMI went above 50, which was last seen in March 2012. As growth is seen stabilizing, the government will be able to pay
US stocks plummeted with many factors influencing the move such as poor corporate earnings reports, tensions in Ukraine and worries about a market top. The Dow Jones industrial average dropped 1.9% and the Nasdaq composite 2.1% with Whole Foods Market and Exxon Mobil leading the downturn. In addition oil, gold and the US Treasuries also fell for the day.
Argentina's President Cristina Fernandez de Kirchner opposed the Standard & Poor's default announcement for Argentina, which could be its second one in 13 years. As the bond prices of Argentina plummeted Fernandez said that she's open to additional talks but paying the hedge funds would cause additional claims and destroy the country's economy.
The Greenback made way towards biggest monthly gain against the Euro since February 2013 after signs of the consolidating U.S. economy induced the traders to boost forecasts for higher Fed interest rates. The Dollar appreciated against all of its 16 major peers this month as jobless claims dropped to the lowest in nearly eight years.
Euro-area inflation suddenly decelerated this in July to the lowest in nearly five years, emphasizing the ECB's concerns the economy is too weak to boost price growth. The inflation was 0.4% this month compared to 0.5% in June. The inflation rate has consistently been weaker than 1% for the last 10 months, whereas the unemployment rate stayed close to the record high for months.
U.S. treasuries are approaching a second month's loss as investors bet that the Fed will increase interest rates due to economic growth in the U.S. exceeding expectations. The government securities declined 0.1% this month, while the extra yield on 10-year notes went up to 139 basis points versus German bunds. The 10-year yield was little changed at 2.54% and it
According to Nationwide the housing prices in July only increased by 0.1% on the month and were lower on the year falling from 11.8% the previous month to 10.6%. The BoE has already introduced measures to combat risks of such a high level of borrowing for home purchases and these news could finally indicate a cooling of the UK's red hot housing market.
Subsequent to two months of increasing, the number of unemployed people in Germany decreased by 12,000. Forecasts pointed to a decrease of 5,000 people. During the previous month the number of unemployed people increased by 7,000.
The Texas light sweet declined for a forth day in a row due to rising US fuel supplies. With the supplies increasing by 365,000 barrels to 218.2 million the WTI September futures contract fell by 1.1% and was trading at $99.16 a barrel on the NYMEX. Meanwhile, the Brent was also lower at $105.88 a barrel losing 63 cents for the day.
The Aussie depreciated against the U.S. Dollar today, following the issue of the downbeat construction approvals data from Australia, however the Fed's latest statement restricted the Greenback growth. AUD/USD reached 0.9307 during the morning trade, but dropped 0.13% and consolidated at 0.9318. The building approvals in Australia slipped 5% last month as compared to the projected decline of only 2%.
For the second time in twelve years Argentina has defaulted. Argentina had until midnight, as a deadline for coupon payment concerning exchange bonds. Having failed to honour the debt, Argentina defaulted once again. However, this time the country remains solvent and it is a matter of how fast it will be sorted out. Argentina has foreign exchange reserves of 29
The bearish sentiment for Russian shares reached a record in March yet it quickly turned as the Micex has gained 29% since then. With the sanctions being milder than expected it added another 2.6% yesterday and was trading at $24.46. In addition, many traders are now simply staying away from this market as its further direction is very uncertain.
The Kiwi climbed against the Greenback, recovering from almost the lowest price in two months, which had been a result of a statement from the RBNZ. But now the Fed's policy announcement hurt demand for the US Dollar. The pair hit 0.8518, its highest in two days, and proceeded to consolidate at 0.8505.
Japan's wage growth decelerated in June, underlining the risk to consumer expenditure as inflation compresses household budgets in the country's economy. Average total monthly earnings grew 0.4% from last year as compared to a 0.6% gain in May, whereas the wages jumped 0.3% excluding bonuses and overtime. Japan's Prime Minister Shinzo Abe says wages have to grow quicker than inflation to boost the economic recovery.
Gold fell for a second day leading to a monthly drop as the U.S. economy expands further, thus increasing the possibility of an interest rate hike. Immediate delivery price declined 0.4% to $1,291.57 an ounce, the lowest during the last week. A fourth consecutive day loss could create the longest streak since June.
The Sterling depreciated against the Greenback following the data the U.S. economy overshoot the expectations in the second quarter, fueling rumours the Fed will increase interest rates earlier than projected. The Cable was trading at 1.6900 during the U.S. trading session, above the low at 1.6889 and below the high at 1.6955. The Commerce Department announced the U.S. GDP grew at the annual rate of
The Dollar is looking to the largest monthly gain against the Euro since last year's February with the US economic data showing extremely positive results. The Greenback has advanced against 15 of the other 16 major currencies as the GDP saw a 4% annualized growth this quarter. This and the strong employment numbers make the US future outlook quite promising.
The economic growth in the second quarter was led by an increase in consumption and investment, which indicated that the slump in the first quarter was an anomaly. GDP went up 4% from April to June exceeding the forecast of economists. The increase was the same as the medial growth rate starting from July to December 2013, the strongest six-month
China has to adjust the economic growth target of 6.5-7% for the next year and plans to abstain from stimulus measures unless the economy faces the prospect of further sharp decline from that level, the IMF said today. The International Monetary Fund repeated its forecast that the economic growth would slip to 7.4% this year and sink further to 7.1% in 2015.
The greenback increased to its highest value in one-and-a-half months against the Canadian Dollar due to solid US gross domestic product growth and employment change. The pair hit 1.0894, the highest since in one-and-a-half months, and proceeded to consolidate at 1.0892, representing a 0.36% increase.
German inflation fell reinforcing the signs that ECB's stimulus will not affect the region right away. The CPI declined by 0.2% to 0.8% in July compared to June's data. As the ECB has already announced the measures to avoid deflation and reach the inflation goal of 2% these news could only lead to further boosts to the economy.
Euro fell to an eight-month low on Wednesday and was trading at 1.3395 against the Dollar. The fall has come as a bit of a surprise with Spain's promising GDP growth numbers. However, with the US recovery going a lot better than the EU's it might just show the strength of the Greenback. Meanwhile, the European stocks also fell due to recent sanctions against Russia.