The #IronFX Midday Commentary by Marshall Gittler: • #Forex markets were relatively quiet during the #European morning Wednesday, with the dollar trading virtually unchanged against most of its #G10 counterparts. The greenback was higher against #NZD, #EUR and #CHF, in that order, while it was lower against NOK. • The New Zealand dollar extended its overnight loses after the weaker-than-expected inflation data and the additional decline in dairy prices at the latest auction. Chinese 2Q #GDP showed better-than-expected growth, however a statement by a person from the Chinese statistical Bureau that problems in the nation’s property sector may exert downward pressure on Chinese growth added to the Kiwi decline. • As for this morning’s indicators, the #unemployment rate in the #UK fell to 6.5%, a five-year low, in line with estimates. Nevertheless, Cable weakened at the release of the news as the focus was on the average weekly earnings, which slowed in pace to +0.3% yoy (3 month average) from an upwardly revised +0.8% yoy. The slow growth in wages indicates that there is still spare capacity in the labor market and the Monetary Policy Committee is likely to conclude that there is no urgent need to tighten.
Posted on: Wed, 16 Jul 2014 10:21:56 +0000
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