GLOBAL FOREX MARKET REPORT - 15 JULY 2014 United States Dollar (USD): The Fed Chair’s Janet Yellen addresses the Senate Banking Commission today and whilst it is expected she’ll re-emphasize current fiscal stimulus measures the market will also be looking for any hints as to when interest rates may be raised. The US Economy has continued to show growth with recent employment and manufacturing figures leading the way. USD has traded higher against majors in early trade, forex market volatility is expected during the day and during Yellen’s address. British Pound (GBP): Sterling has eased off against most majors in the past week following a string of lacklustre data releases. The currency is still near its year high as markets watch for any signs of a rate hike by the BoE this year. Inflation figures released this morning show June inflation higher than the expected 1.6% at 1.9%. On the news front, there is a Treasury Select Committee hearing today on UK financial stability, the market is no expecting any major news and will instead look to the US Fed address. Euro (EUR): Euro has traded in a tight band recently but faces downside pressures after ECB President Mario Draghi cautioned the risk of a stronger EURO on European economic recovery. The bank remains committed to its accommodative monetary policy with cheap lending to financial institutions. Australian Dollar (AUD): Mixed data on the AUS economy has contributed to the currency losing ground, although export and production data have shown improvement there is a worry on employment being created. Furthermore the relative strength of AUD is seen as damaging to further export volumes. New Zealand Dollar (NZD): The Kiwi Dollar is at levels nearing a 10yr low against the US Dollar. NZD strength has come from several interest rate hikes this year. Expectations are that the NZ Reserve Bank will continue on its inflation fighting policy and that a further rate hike can be expected. Canadian Dollar (CAD): The Loonie has fallen to a two-week low against the US Dollar on the back of weak employment figures and recent gains by the USD. The Bank of Canada is expected to keep rates unchanged in the medium term.
Posted on: Tue, 15 Jul 2014 11:49:50 +0000