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Forex News from NewForex: European indexes rise after fresh data on Eurozone

 

European markets display positive dynamics in the trading on Friday, July 29. However, the increase is quite moderate as investors estimate the decision of the Bank of Japan to keep the interest rate unchanged at −0.1%, while a lot of market participants expected a descend to −0.2%.

 

Today the pan-European index STOXX 600 advanced 0.57%. The UK’s FTSE picked up 0.03%, the German DAX added 0.62%, the French CAC 40 climbed 0.21%.

 

Latest data on economic situation in Eurozone lends support to the market. The GDP of Eurozone in the second quarter dropped from 0.6% to 0.3%, which complies with forecasts. The unemployment rate in June remained at the level 10.1%. The preliminary consumer price index for July rose year-on-year from 0.1% in June to 0.2% this month. The core CPI, which excludes food, energy, alcohol and tobacco prices, remained at 0.9%.

 

Currently the currency instrument euro/dollar edged up 0.22% to 1.1099. Euro/pound surged 0.19% to 0.8426.

 

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NewForex Analyst

 

David Fineberg

 

Forex News from NewForex: Oil and gold prices tumble

 

On Friday, July 29, oil futures hit a 3-month low. Obviously oil glut contributes to the negative sentiment in the market. WTI futures with the delivery in September dropped by 0.95% to $40.75. Brent shed 1.5% to $42.06. It was reported this week that US oil inventories rose by 1.7 million barrels to 521.1 million barrels which presents a historic high for this summer.

 

Gold loses ground as well in spite of decisions of the Bank of Japan and the Fed to hold the interest rate unchanged. Today gold futures with the delivery in December slid 0.03% to $1.340.80 a troy ounce. The immediate level of support is seen at $1,330.10 (a low since July 28), the level of resistance stands at $1,356.90 (a high since July 12). Spot gold edged down to 0.1% to 1.334.16.

 

Silver futures with the delivery in September tumbled 0.55% to $20.085 a troy ounce whereas silver spot declined by 0.53% to $20.04.

 

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NewForex Analyst

 

David Fineberg

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Forex News from NewForex: Fundamental analysis of gold

This year gold rose almost 25%, having reached its highest level of $1.375.25 (since March, 2014) after Great Britain left the EU. The price tumbled amid the news that USA economy gains strength.

 

The positive analytics from the USA about employment shows good perspective for the world’s largest economy and may exert additional influence on the gold price.

More strong data on jobs in nonagricultural sector gives the Fed more freedom to raise interest rates what may decrease the gold price in the short term.

 

The price of gold slid $7 to 1341. Now it is not able to rise higher as traders still do not know what move the Fed will make. Some traders discuss a possible rate hike in September while others talk about its decline.

 

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NewForex Analyst

Luigi Campo

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Forex News from NewForex: Fundamental analysis of European currency

 

One of the main economic news on August 24, 2016 was the release of Germany GDP data. Following this information, the Euro slids versus all currencies as the negative sentiments spread.

Due to the unusual liquidity flow of EUR/USD, Common European Currency strengthened during the US session.

However, discarding the influence of the dollar, we can observe that the Euro is facing the negative impact of the fundamental factors.

The most significant event today is the updating of Germany GDP data for the second quarter. The expected record growth of 2.2% is confirmed.

However, the real problem refers to the future trends, not to the previous indexes.

As expected, export (8.2% of growth) and investment in construction (5.2%) played the key role in GDP growth.

 

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NewForex Analyst

Joseph Schwartz

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Forex News from NewForex: Fundamental analysis of American currency

 

Today the most significant economic news affecting the Forex market quotes, is publishing of data on the real estate sale in the primary market of the United States. If positive statistics are released, it will mean the readiness of citizens to spend considerable sums to purchase of the real estate, which proves their confidence in economic situation. This year new build sales increased by 31% and verged to 654.000 houses a year. This is a good indicator. It is possible to estimate in such conditions both the growth of incomes, and the GDP increase in the United States. NewForex analysts believe that this fact will push the Fed to increase interest rates in the current year. Most likely it will happen after the presidential elections at the meeting on December 14. Taking into account that financial markets consider not only the facts but also rumors and expectations, we can assume that the decision on the intermediate-term selling of EUR/USD can be made today. The data on actual sales result of houses will be published in the afternoon. According to our forecast, we will see the better statistics than expected. Considering this, we advise to sell the pair EUR/USD.

 

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NewForex Analyst

 

Joseph Schwartz

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Forex News from NewForex: fundamental news from US

 

The FOMC meeting in September will be held less than in a month. Next week the market will get a large block of macroeconomic statistics that can considerably affect expectations about the next actions of the regulator. First of all, two interesting events are expected next week: the publication of U.S. GDP data for the second quarter and the speech of Federal Reserve Chair Janet Yellen at the annual symposium in Jackson Hole. Investors should be careful, because the attention on Yellen’s speech may cause increase in the volatility of the market.

 

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NewForex Analyst

 

David Fineberg

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Forex News from NewForex: Negative data on the British currency

 

NewForex analysts suggest to enter today into a short position on GBP/USD. First, there is a reason to expect good data on the private consumption expenditures in the US in July. This index has a strong impact on the currency market. It will strengthen the American currency, which will decrease the dollar in its turn. Second, the credit markets give us a clear signal on the decline. The fact that the yield of the UK ten years government bonds tumbles against its counterparts in the United States.This increases the demand for the American currency. And this fact leads GBP/USD to decrease.

 

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NewForex Analyst

 

Michael Butnitsky

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Guest CarlosR1713007162
The dollar trimmed gains but remained supported against other major currencies on Friday, after the release of positive U.S. employment data and amid mouting optimism over a major U.S. tax reform plan.
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