31/07/2014 - July Daily Review
- Mark Densel
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- MARKETS NEWS
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July 31, 2014 - Daily Market News
Today's Hot Assets: CAD, USD
U.S. data was mixed yesterday. ADP Non-Farm Employment Change was worse than expected, but GDP grew by as much as 4%. The data spurred demand for the U.S. dollar as many investors expected as a positive FOMC statement. During the meeting, an additional $ 10000000000 cut from quantitative easing, which means a total of $ 25 billion / month. The statement, however, did not meet expectations. Yellen stressed that labor was slacking and that wages are still too low. Therefore, we can conclude that the rate will not be raised shortly. After the dovish tone, U.S. stocks ended mixed. S & P 500 closed 0.01% higher and the Dow Jones lost 0.19%. Asian markets were also mixed. Hang Seng rose 0.1%, trading near a 7 year high, as direct trade between Shanghai and Hang Seng should be introduced in October. The Nikkei lost 0.16% as the yen strengthened against the U.S. dollar was trading at 102.71. European markets are lower today after eurozone inflation came out below expectations of 0.4%. Currently, the FTSE 100 is 0.24% lower, the CAC 40 is 0.72% lower and the DAX is 1.01% lower.
WTI Crude fell yesterday despite the EIA reported that inventories decreased by 3.7 million barrels. The losses came as the dollar headed for the top prize against the euro since February. Increased sanctions against Russia has also done much to support the price. Today, traders should focus on labor market data from the U.S. Gold traded choppy after a mixed outlook for the U.S. Positive economic data is bullish for the dollar and bearish for gold and as the U.S. economy continues to improve the metal has lost its luster. The main event for gold will be the NFP report, which will be released tomorrow, and it is doubtful that we will see much movement before then.
Today's Main Events:
09:00 GMT: EUR - CPI - measures changes in the price of goods and services from a consumer perspective.
12:30 GMT: CAD - GDP - measures the annual change in inflation-adjusted value of all goods and services produced by the economy.
12:30 GMT: USD - Initial Jobless Claims - measures the number of individuals who filed for unemployment insurance for the first time during the past week
13:45 GMT: USD - Chicago PMI - determines the economic health of the manufacturing sector in the Chicago region.