Daily Video Review - 07/07
- Donald Herison
- English
- MARKETS NEWS
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1. U.S. stocks fell in early trading on Monday after Greeks overwhelmingly rejected conditions of a rescue package from creditors, throwing the future of the country's euro zone membership into further doubt.
Stock markets globally fell, but analysts said the declines were less than expected due to expectations that the European Central Bank would act to limit any damage.
The ECB's governing council is due to hold a conference call on Monday afternoon to discuss the provision of emergency funding to Greece's banks. The call was originally to be held at noon. A new bailout deal is needed for Greece to meet a July 20 deadline to repay $3.9 billion of bonds to the ECB.
2. The U.S. dollar rose to fresh two-and-a-half month highs against its Canadian counterpart on Monday, as demand for the safe-haven greenback strengthened broadly after Greek voters rejected conditions of a rescue package from creditors on Sunday.
USD/CAD hit 1.2652 during early U.S. trade, the pair's highest since April 13; the pair subsequently consolidated at 1.2650, gaining 0.62%.
The pair was likely to find support at 1.2540, Friday's low and resistance at 1.2668, the high of April 10.
3. Service sector activity in the U.S. grew at a slower pace than expected in June, one month after expanding at the weakest rate in more than a year, industry data showed on Monday.
In a report, the Institute of Supply Management said its non-manufacturing purchasing manager's index inched up to 56.0 last month, up from 55.7 in May but below forecasts for a reading of 56.2.
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The euro remained moderately higher against the U.S. dollar on Friday, as investors awaited the outcome of Sunday's Greek referendum and as trading volumes were thin as U.S. markets remained closed for the Independence Day Holiday
Gold prices gained ground in European morning hours on Friday, as the release of downbeat U.S. economic reports on Thursday dampened demand for the greenback, while trading volumes were expected to remain thin with U.S. markets closed for a national holiday.
Crude oil futures fell to fresh two-month lows on Friday, as markets were still digesting news of an unexpected rise in U.S. stockpiles and as trading volumes remained thin with U.S. markets closed for the Independence Day weekend.
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Gold prices rebounded from more than three-month lows on Thursday after data showing that the U.S. economy added fewer jobs than expected last month tempered expectations for higher interest rates.
Gold futures for August delivery were last at $1,164.7 a troy ounce, off the day’s lows of $1,158.2.
The dollar turned broadly lower after the Labor Department reported that the U.S. economy added 223,000 jobs in June, compared to expectations for jobs growth of 230,000.
U.S. stocks rose on Thursday after data showed job growth slowed in June, indicating that the U.S. Federal Reserve might hold off on raising interest rates in September.
Eight of the 10 major S&P 500 sectors rose, with the utilities index <.SPLRCU> leading the gains with a 1.5 percent rise.
Nonfarm payrolls increased 223,000 last month, below the 230,000 that economists polled by Reuters had expected.
The dollar fell against a basket of other major currencies on Thursday, after data showed that he U.S. economy added fewer jobs than expected last month data, dampening expectations for a rate hike.
The Labor Department reported that the economy added 223,000 jobs in June, compared to expectations for jobs growth of 230,000. May’s figure was revised down to 254,000 from 262,000 previously.
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The U.S. dollar pushed higher against the yen on Wednesday, boosted by the release of upbeat U.S. economic reports and as ongoing concerns over Greece's financial situation lent broad support to the greenback.
USD/JPY hit 123.23 during U.S. morning trade, the pair's highest since June 26; the pair subsequently consolidated at 123.16, advancing 0.53%.
The pair was likely to find support at 121.91, Tuesday's low and a one-month low and resistance at 123.44, the high of June 22.
Oil prices fell to session lows Wednesday after data showing an unexpected build in U.S. oil stockpiles added to concerns over a global supply glut. On the New York Mercantile Exchange, crude oil for August delivery was last down 2.81% to $57.75 a barrel, from around $58.27 ahead of the report.
U.S. construction spending rose in May to its highest level in just over 6-1/2-years as outlays increased across the board, the latest sign of momentum
Construction spending increased 0.8 percent to an annual rate of $1.04 trillion, the highest level since October 2008, the Commerce Department said on Wednesday.
April's outlays were revised slightly to show a 2.1 percent gain instead of the previously reported 2.2 percent rise.The U.S. dollar pushed higher against the yen on Wednesday, boosted by the release of upbeat U.S. economic reports and as ongoing concerns over Greece's financial situation lent broad support to the greenback.
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The dollar remained broadly higher against a basket of other major currencies on Tuesday, after data showed that U.S. consumer confidence improved more than expected in June and as an almost certain default by Greece continued to support safe-haven demand.
U.S. consumer confidence strengthened in June, bolstered by an improving jobs market, according to a private sector report released on Tuesday.
The Conference Board, an industry group, said its index of consumer attitudes rose to 101.4, matching the level set in March and higher than a downwardly revised 94.6 in May.
Economists had forecast a June reading of 97.3, according to a Reuters poll.
The May figure was originally reported at 95.4.
The report's hard-to-get jobs index fell to 25.7 last month from May's downwardly adjusted 27.2.
The euro remained weaker against the other major currencies on Tuesday after Greece requested a new two-year bailout program, just hours ahead of a deadline for what looked to be an almost certain debt default by Athens.
EUR/USD was at 1.1183, off 0.46% for the day, after falling as low as 1.0955 earlier.
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