The governor of the Bank of Japan, Haruhiko Kuroda, still has to persuade the board members that they can achieve their targeted inflation level. The majority of the board disagree that increasing the money supply will result in 2% increase in CPI. The board's conclusion led to believe that it is impossible to do so without the government raising the
Janet Yellen, Chair of the Federal Reserve, seems to have overcome Mario Draghi's power on the control of the common currency. As of last week, Yellen caused the Euro to drop below 1.35 dollars when she stated that US interest rates could rise earlier than anticipated. On the other hand, Draghi's declarations seem to have lost influence over the currency's
As Scotland's independence vote looms, investors are starting to add in the risk of it leaving the UK into the price of the Pound Sterling. Although the majority of voters seem to be against independence, investors are looking to hedge against the possible risk. Furthermore, analysts say that either result in the vote will cause a shock to the currency.
The Asian regional benchmark index headed towards its six-year high as investors believe that the rising tensions in Ukraine will not curb global economic growth. The MSCI Asia Pacific Index rose 0.6% to 147.75 and Hong Kong's Hang Seng Index went up 1.3%. Japan's Topix added 0.8%, while South Korea's Kospi Index increased 0.5%.
The Aussie depreciated against 30 out of 31 main counterparts following concerns raised by a cooling housing market in China. The Australian Dollar dropped 0.2% to 93.73 U.S. cents following 1.3% increase in June, the largest since March. The Aussie fell 0.2% versus the Euro and 0.1% against the Sterling.
Zinc rose to its highest level since 2011, as decreasing inventory and higher consumption created speculation the demand will exceed supply. Zinc went up 1% for three month futures to $2,359 a metric ton. The second best performer between six metals on the London Metal Exchange is up 15% this year.
The gauge for the Dollar was within 0.1% from the month's highest point, as a rise in U.S. treasury yields created speculation that the Fed will increase interest rates. Ray Attrill pointed out that the U.S. Dollar displays correlation with the U.S. yield curve. The Bloomberg Dollar Spot Index was little changed at 1,009.66 and rose 0.1% to 101.50 versus
With continued involvement in Ukraine the Russian financial markets are taking a beating. Since the late February intervention in Crimea Micex has lost around $28 billion in value, which is about 4.2%. This and the distress in Russia's bond market takes place during the time of exuberant demand in other markets, such as in the US and India.
Reserve Bank of Australia Governor Glenn Stevens expressed his satisfaction with the present monetary policy regulation and is prepared to take more actions if needed. The Aussie jumped 5.2% this year reaching almost eight-month high earlier in July. The RBA stressed once again this month it surmises a period of no changes in the interest rates while the government is cutting spending.
As European stocks fell, traders rushed for safe-haven currencies, resulting in rises in both Swiss Franc and Japanese Yen. Still, trading volume was light due to Japan's holiday. During the European session, the Euro dropped to 136.89 versus the Yen and also against the Swiss Franc, trading at 1.2147 francs. In regards to the US Dollar, the shared currency remained
This Monday, Switzerland and China agreed on a deal that allows either central bank (Swiss National Bank and People's Bank of China) to trade their currencies, limited to 150bn Yuan, or 21bn Swiss francs (corresponding to 23.4bn US dollars). The Swiss National Bank stated that the deal will also let them use foreign exchange reserves to participate in the Chinese
Credit Suisse Group AG is prepared to announce its largest quarterly loss since the breakdown of the Lehman Brothers Holding Inc. following a fine of $2.6 billion for assisting american customers to avoid payments. The bank will report a loss of around 701 million Swiss francs and a 1.6 billion-franc fine. Credit Suisse's loss would be the biggest since the end of 2008.
As of earlier this day, the Aussie advanced versus the Dollar by 0.05%. Throughout the Asian session, uncertainties regarding the recovery in the Euro zone caused the shared currency to drop to a five-month low versus the US Dollar and the Japanese Yen. Safe haven currencies' demand has increased, due to the recent instability in Eastern Europe.
German Chancellor's budget doubled in June following an increase in the federal tax revenue and a decrease in the expenses of servicing debt. The federal tax revenue climbed 10.9% in June, whereas spending fell 0.4%. The state tax revenue by-turn jumped 19.6%. Merkel set the objective to operate a near-balanced budget in the present year and give up new borrowing
Mariano Rajoy's duties on Spain's economy may not yet be complete as Spain expects to enter a second year of recovery. The nation's economy still depends on adjusted exports from the debt crisis as Spain's domestic demand is limited. Spain's GDP grew 0.4% for two consecutive quarters for the first time since 2007, faster than the Euro-region average.
European stocks went down as investors weighed financial reports and global tensions of the Malaysian passenger jet and the Gaza-Israel conflict. The Stoxx Europe 600 Index dropped 0.3% to 338.61, while EURO STOXX 50 lost 0.42%. FTSE 100 Index went down 0.2% and CAC 40 Index decreased 0.35%.
It is expected that Britain's GDP (not considering GDP per capita) recovers from the loss which occurred during the financial crisis. Growth was forecast at 0.8%. However, there is not a consensus regarding this value, as a result of substandard statistics from construction and manufacturing. Some analysts consider this prediction to be overstated and that the actual figure may be
Corn fell to the lowest level over the last four years as global supplies are increasing. Deliveries for August went down 1.4%, reaching $3.7325 a bushel, the lowest since July 14 in 2010. Futures plummeted 25% during the previous year on expectations that more bumper harvest in the U.S. will increase global supplies.
British economy may be on its way to recovery as the economic indicators rose for the sixth consecutive quarter returning GDP to the levels experienced prior to the financial crisis. The gross domestic product added another 0.8% in the second quarter matching the first quarter's result. This year's economic output is expected to surpass its 2007 peak.
New Zealand Dollar strengthened for a second straight day against all of the 16 major currencies on speculation that the RBNZ will raise interest rates. According to a survey by Bloomberg, 14 out 15 economists expect a rise to 3.50% in the official cash rate on July 24. The Kiwi appreciated 0.3% to 87.09 U.S. cents, posting the largest increase
London real estate prices decreased for the second month in a row as the rising number of property for sale mitigated the market. Asking prices in U.K. dropped 0.4% and averaged at 587,174 pounds in July, whereas across England and Wales prices fell 0.8%. The property market is said to be losing pace after the BoE concluded it represented the greatest risk to the economic recovery.
A release of U.S. consumer sentiment report drove the Euro away from 1.3491, the lowest point since January. University of Michigan stated that CSI (Consumer Sentiment Index) dipped to 81.3 during a month. EUR/USD rose to 1.3513 and is likely to be supported at 1.3478, while the resistance is reckoned to be at 1.3540. Meanwhile, the Euro settled at 0.7918
Consumer expectations deteriorated for a third consecutive time, and consumer sentiment in the U.S. slipped. The preliminary July report based on Reuters and University of Michigan's research stated consumes sentiment index is at 81.3, a reading below expectations. Consumer confidence declined due to negative GDP growth in the first quarter and shallow employment gains.
June provided a 2.4% increase, following a 2.3% rise in May. Prices surged in all main components over the whole year. Respectively, shelter costs jumped 2.9%, electricity prices added 4.2%, food prices +2.9%, transportation index +2.2% and gasoline advanced 5.4%, clothing and footwear +1.6%, whereas the index for alcohol and tobacco advanced 4.1% during 12 months to June.