GLOBAL FOREX MARKET REPORT - 22 JULY 2014 United States Dollar (USD): With limited economic data out this week the market will mainly be watching the crises in Ukraine and Gaza. The US Dollar has been trading in a fairly narrow range over the past few days against most majors. On the economic calendar for the US, today there will be CPI data and on Thursday New Home Sales and Jobless Claims numbers. British Pound (GBP): Sterling has continued to edge down slightly against majors such as USD, CAD and AUD in the past week and has made marginal gains against the Euro. The majority of analysts commenting in a Reuter’s poll do not believe that there will be a rate hike from the Bank of England in 2014. Indications are that a the BoE may start to tighten fiscal policy in 2015. The latest house price figures have should a marginal cooling of but the residential property market is still sitting neat 10 year highs. Euro (EUR): European markets will be closely watching the situation in Ukraine, possible further sanctions against Russia have been proposed. The EUR continues to trade in a tight band as the market sets up for any geopolitical news, Euro appreciation is usually seen in times of uncertainty although slight depreciation has been recorded against the US Dollar and Sterling in early Tuesday trade. Australian Dollar (AUD): Analysts see the AUD slipping below 0.92 to the USD in the next three months and possibly below 0.90 in 2015, the reverse in gains are expected to come about as a result of US$ strength. The past week has seen an appreciation of about 0.5%. Growth data from Oz continues to be mixed and future predictions have been heavily dependent on figures out of China as Australia’s largest export market. With roughly 32% of all exports demanded by China, the importance of the AUS exchange rate faces tough scrutiny. New Zealand Dollar (NZD): The NZ Reserve Bank announces the Official Cash Rate on Thursday this week. With several rate hikes already this year analysts are wary of a further hike to match the inflation fighting policy laid down. Canadian Dollar (CAD): The CAD has depreciated slightly against the Dollar this week, continuing a recent trend. The market has been a bit bearish on CAD in recent weeks, the market is mainly following the US Fed for direction but the tone is expected to continue in the short to medium term.
Posted on: Tue, 22 Jul 2014 11:12:10 +0000
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