During the previous week less people filed applications for jobless benefits, causing July's average to fall to the lowest value in eight years. This means that the labour market keeps gaining momentum. Unemployment claims data revealed that 289,000 people filed for benefits, representing a decrease of 14,000 from the previous period.
Russia's President Vladimir Putin issued a ban on food imports on Wednesday from the countries that have recently imposed sanctions against Russia. With the EU being the country's largest importer of meat, dairy, fruit and vegetable products these probably will be banned even though the list remains in the works. Meanwhile, the Russian forces near the Ukraine border seem to
As it was expected, the European Central Bank did not change the minimum bid rate, keeping it at 0.15%. In the meantime, marginal lending facility rate was also unchanged at 0.4% and deposit facility rate at -0.1%.
As the tension in Ukraine intensified, with Russian troops gathering close to Ukraine's border, the higher demand for safe-haven triggered an increase in gold futures. Gold for December rose to 1,309.10 on the NYME. Elsewhere, silver futures for September also rose by 1.08% to 20.048 and copper declined to 3.164.
The common currency remained steady versus the Greenback, trading just above the nine-month lows before the conclusion of the ECB meeting later today. EUR/USD was traded at 1.3378, off yesterday's level of 1.3332, the pair's lowest since November 8th. The investors anticipate the ECB's rate announcement later today, following the controversy in monetary policy among it and its major counterparts.
The Japanese Yen fell against the other majors, after suddenly rising due to concerns regarding the ongoing tension in Ukraine. The US Dollar rose to 102.37 from 102.1 against the Yen. As to the common currency, the Yen dropped to 137.03 from 136.65. However, traders are still on hold as they wait for Mario Draghi's speech later today.
Bank of America is negotiating a settlement with the US Department of Justice around the 16, 17 billion US dollar mark. The record agreement to stop probes into mortgage-backed bonds could send as much as $9 billion in cash and the remainder in consumer relief. If this settlement is successful then it will become the largest in history surpassing the recent JPMorgan's $13 billion deal.
While waiting for Chinese data regarding its trade, which is an important indicator of the strength of the economy, the WTI crude ranged close to its lowest value in six months. Meanwhile, the Brent crude remained steady. On the NYME WTI futures dropped to 96.86 a barrel.
The New Zealand Dollar depreciated against the Greenback today after the demand for the U.S. Dollar remained backed up by the recent array of positive U.S. economic data and as markets anticipate the impending U.S. jobless claims figures. NZD/USD traded at 0.8463 today. The U.S. Dollar remained supported as the data indicated an unforeseen narrowing of the U.S. trade deficit in June.
The Aussie weakened the most since the beginning of July as the traders anticipate the RBA to cut the interest rates, following the jobless rate reaching its peak since 2002. The Australian Dollar depreciated at least 0.5% against all 31 major peer. The Australia's unemployment rate exceeded the U.S. level for the first time in seven years. The Aussie dropped 0.9% to 92.70 U.S. cents, the
Australia's jobless numbers were larger than the US for the first time since 2007 sending the Aussie into a steep fall. The unemployment data came out at 6.4% rising from 6% as this high of a number was not even seen in the financial crisis, when the boom in Australia's mining helped keep it lower. Furthermore, the AUD/USD dropped from 93.43 to 92.87 after the
The Sterling depreciated versus the Greenback on Wednesday, following the issue of the U.K. manufacturing and industrial output reports that forced the investors to rethink their assessments as to when the BoE is going to tighten policy. GBP/USD dropped 0.23% and was trading down at 1.6848. The manufacturing output in the U.K. rose by only 0.3% in June, below projected 0.6%.
Germany's industrial production growth was smaller than forecast as the country faced distress in its relations with Russia. The industrial output grew 0.3% in June compared to the 1.7% decline the previous month and with the EU agreeing on sanctions against Russia many of its other economic indicators have also reached lower levels. In addition the EUR/USD pair fell to 1.3376 after the news.
The Yen grew the most in the last four months following the outburst in the relations between Russia and the Western nations over Ukraine, which stifled the attractiveness of riskier assets. The Yen jumped 0.5% to 102.10 per Dollar after appreciating as much as 0.8%, the highest level since April 8th. The Yen also gained 0.4% to 136.64 per Euro.
Unpredictably, the trade deficit in the US shrank to 41.54 billion from 44.66 previous month (the figure was revised from 44.4). According to analysts, the trade gap was expected to increase to 44.7 in June. This decrease was driven by higher exports (0.1%) and lower imports (-1.2%). After the release the Greenback rose to 1.3347 against the Euro.
The Pound fell after a three day increase as the UK's economic data proved to be very weak. Scotland's referendum debate, inflation and production data all contributed to the decline. The Pound Sterling lost 0.4% against the Dollar and the Cable traded at 1.6822. Also, the 10-year gilt yields fell to their lowest level in a year.
The Yen climbed to its highest intraday price against the Greenback, coming near to the highest value in one week, indicating risk aversion in the market. Due on Friday is the Bank of Japan meeting, where the decision regarding BoJ's easing programme will be announced. The Japanese Yen rose by 0.21% to 102.37 versus the US Dollar.
The third biggest economy in the Euro zone, Italy, is still in recession. Data regarding the preliminary gross domestic product showed that Italy's GDP diminished by 0.2% on the second quarter. Analysts had forecast that it would recover from the previous quarter's 0.1% downfall and expected it to rise by 0.1%. During the previous year the Italian economy contracted 1.9%.
The forecast for industrial production in the United Kingdom was 0.6%, according to a Bloomberg survey. However, the release showed that production only managed to inch up by 0.3%, causing the Cable to prolong its losses, trading at 1.6839 earlier today. In another release, manufacturing production was revealed to be disappointing as well, rising 0.3% in June.
The Euro reached its lowest level in nine months against the Greenback on Tuesday as the service sector data for the Euro zone did not convince in robustness of its economy. Even though the services PMI for the whole union was above expectations, Italy's data disappointed. Furthermore, US positive service sector number also weighed on the EUR/USD pair.
The Australian Dollar appreciated versus its U.S. peer on Wednesday, though growth is expected to remain restricted, following U.S. economic reports released on Tuesday that secure attractiveness of the Greenback. AUD/USD reached 0.9343 yesterday afternoon, consolidating at 0.9315. The Aussie came under pressure yesterday, following the RBA decision to keep interest rate on the record low 2.5%.
For the second time this week the West Texas Intermediate climbed as US stockpiles declined. The Brent also rose in London. The drop in supplies, amounting a total of 5.5 million barrels, caused the WTI futures to increase by 0.4%. For September, the futures climbed by 34 cents to 97.72 on the NYME.
The New Zealand Dollar reached the weakest level in two months versus its U.S. peer on Wednesday, as the employment figures showed that the number of the new jobs in New Zealand missed the expectations in the second quarter. NZD/USD reached 0.8424, the lowest level since June 4. The pair consolidated afterwards at 0.8439, depreciating 0.34%.
U.K shop prices dropped by a record last month, pointing inflation pressure remains suppressed as the BoE policy makers start their monthly meeting. The British Retail Consortium reported today prices in the shops decreased annual 1.9%, the most since 2006. The CPI is below the Bank of England's 2% target and it is projected the BoE will keep the interest rate on the same level of