As traders assess the possibility of higher interest rates in the US, gold futures rose on Monday. Due to disappointing unemployment figures, traders are wary that interest rates in the US may not raised as soon as expected. During the European session, gold prices fluctuated between 1,292.50 and 1,296.30.
The New Zealand Dollar depreciated versus its U.S. peer today, as investors remained prudent following the release of unfavourable U.S. jobs figures on Friday. NZD/USD reached 0.8503 in the afternoon Asian trade, dropping 0.09% and consolidating at 0.8506 later on. The official reports indicated that the U.S. economy supplemented 209,000 jobs in the previous month in comparison with 233,000 jobs forecast.
Bank of Portugal has taken control of Banco Espirito Santo SA by bailing it out with 4.9 billion euros, which will cause the junior bondholders to take a loss. The Portugese central bank will relocate the bank's most important assets to a new bank called Novo Banco and look to finance the rescue with its eventual sale. Nevertheless, Portugal still has 6.4 billion euros from
The fourth largest economy in the Euro zone, Spain, released today the figures regarding unemployment change. The data showed that the number of jobless people dropped by 29,841 in July. However, analysts had forecast a much bigger fall of 111,900. Joblessness in Spain remains a concerning issue as the unemployment rate for the second quarter revealed to be 24.47%.
Following the release concerning the growth in Australian retail sales the Aussie held steady against the greenback. The data released showed that retail sales climbed by 0.6% in June, surpassing its 0.4% forecast. The pair hit 0.9330 during the Asian session and proceeded to consolidate at 0.9315. Against the Euro, the Australian Dollar also inched up to 1.4407.
The PboC stated that the country's credit and money supply have grown quickly and notified it will abstain from further monetary easing to back up the economy. The IMF said last week China's dependence on debt and investment has caused "rising vulnerabilities" and the inability to change the growth pattern raises the possibility of rapid economic decline.
The Chinese PMI for the non-manufacturing sector was 54.2 in July falling from 55 the month prior. However, the general sentiment towards the economy is still positive as the number indicates further expansion and the manufacturing PMI has showed signs of delivering the long awaited rebound. The only worrying part for the Chinese economy now is the housing sector.
The Sterling depreciated for the fourth week in a row versus the Greenback as U.K. economic figures from the manufacturing production to the consumer confidence were lower than anticipated. The Pound slipped 0.8% to $1.6832 dropping to a 7-week low. That is the longest decline since March 8th. The Sterling fell 0.9% to 79.80 pence per Euro. It is projected the U.K. currency will slide
The Euro was 0.4% from its weakest level against the Greenback since November after the investors held the biggest position anticipating the fall in the currency ahead of the ECB meeting this week. The common currency dropped 3.2% during the previous three months following ECB's decision to cut the rates to boost the inflation. The Euro traded at $1.3424 after sliding to $1.3367 on July 30th,
As a refinery fire decreased demand the West Texas Intermediate fell to its lowest point in six months. The Coffeyville refinery could be shut down for as long as four weeks with the downward pressure on the prices continuing. Furthermore, this added to the largest fall in more than two years for the WTI as it fell 6.8% in July.
The Commerce Department reported today that U.S. consumer expenditure grew for the fifth month in a row in June having jumped 0.4%. Spending is being supported by the firm growth in income, which increased 0.4% in June, owing to the recovering labour market. Despite the gains in expenditure, inflation slipped in June.
During the month of July 209,000 jobs were added in the US. Compared to the previous month and the current month's forecast, 298,000 and 230,000 respectively, the number was disappointing. However, being the six month in a row to increase by over 200,000 jobs, it represents a sign of increasing optimism regarding the economic view. Adding to this, the unemployment
According to the reports by Markit published today, the Euro Zone's PMI decreased unexpectedly in July. The manufacturing PMI dropped slightly to 51.8 falling down from 51.9 in the previous month. The Euro Zone's manufacturing PMI was expected to stay unaltered at 51.9, but has declined due to further reduction in French manufacturers.
The Aussie declined to its lowest price in two months against the US Dollar after the Australian PPI dropped 0.1% during the month of June. Depending on the release concerning the non-farm employment change in the US, with a forecast of 231,000 more jobs, the pair could slump even more. The pair traded at 0.9283 after slipping 0.09%.
The Sterling reached the lowest level in six weeks versus the U.S. Dollar following the issue of the disappointing U.K. PMI figures as investors remained prudent ahead of expected U.S. jobs report. GBP/USD reached 1.6840 in the morning, consolidating at 1.6850. The Manufacturing Purchasing Managers' index dropped to 55.4% last month.
South Korea's Won touched a 6-month low amid the growing demand for the U.S. Dollar as the figures showed positive signs of the economic recovery of the United States. The Won depreciated 0.9% to 1,037.10 per Dollar, the biggest decrease since the end of January. The Bloomberg Dollar Spot Index by-turn jumped 0.8% for the third weekly rise.
The Pound is feeling continued pressure with the Dollar reaching higher levels. As the GBP/USD pair broke through both the 1.7 and 1.69 levels the soon due UK manufacturing PMI needs to show some really positive numbers to halt the decline. However, there seems to be further support for the USD from both the economy's data and institutions downgrading their forecast for the GBP/USD.
Spanish Manufacturing PMI dropped to 53.9 from 54.6 in the previous month. Analysts had forecast an increase to 54.7. During the morning, Euro Stoxx 50 decreased 0.72%, CAC 40 lost 0.83% and DAX retreated 0.75%. Despite several important releases due for this day, the most anticipated releases are the US non-farm employment change and unemployment rate.
This Friday gold futures climbed gently. However, as US data revealed a day before supported the greenback, the contract remained close to its lowest value in six weeks. On the commodity exchange division of the NYME, December's gold was traded at 1,285.40 dollars per troy ounce, capped by positive US data releases.
The Sterling experienced its biggest monthly depreciation versus the Dollar since May 2013 as omens of the growth in the U.S. economy fueled expectations for increased Fed interest rates. The Pound slipped 0.2% to $1.6884 prolonging its monthly decline to 1.3%. The Sterling also weakened 0.1% to 79.28 pence per euro, reducing the gain in July to 1%.
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.