By Deepta Bolaky
It was a busy European and US session. The focus was on the Fed’s testimony and the FOMC minutes to gauge the interest rate outlook after last week’s buoyant nonfarm payrolls results.
Testimony– Semiannual Monetary Policy Report to the Congress
FOMC Minutes – June Meeting
The US sharemarkets rose on the signals of a July rate cut by the Fed. Wall Street hit new records:
In the forex markets, attention was on the US dollar which was sent to the downside after the testimony is releases. The greenback recovered slightly after the FOMC minutes. All in all, major currencies were firmer against the US dollar.
The British Pound found some upside traction on the release of UK macro data. The Manufacturing and Industrial Production rose in May compared but missed estimates. The GDP figures supported the local currency. The UK economy expanded by 0.3% in May and the trade deficit dropped from £-12.761B to £-11.524B.
The GBPUSD edged higher on the mixed data and the Fed’s comments at 1.25 US cents.
GBPUSD (Hourly Chart)
Source: GO MT4
Oil prices found support on Iran tensions on rumours of the US to strike Iranian targets in Syria, and another bullish oil report with a more-than-expected draw in the US crude oil inventories.
WTI and Brent Crude are trading weeks higher in the vicinity of $60 and $66.
UKOUSD and USOUSD (Hourly Chart)
Source: GO MT4
The Fed’s comments revived the demand for the yellow metal which rose to $1,419.
XAUUSD (Hourly Chart)
Source: Bloomberg Terminal
Bitcoin dropped after the Fed Chair comments:
“I just think it cannot go forward without there being broad satisfaction with the way the company has addressed money laundering”
Before retreated from this week’s high, but is still trading above the $12,000 mark. Other cryptocurrencies were also seen to trade on the downside.
Credit Card Spending, and Electronic Card Retail Sales (New Zealand)
Foreign Stock and Bond Investment (Japan)
Consumer Inflation Expectations and Investment Lending for Homes, Home Loans (Australia)
Harmonized Index of Consumer Prices (Germany)
Jobless Claims, Consumer Price Index, and Monthly Budget Statement (US)
|Friday, 12 July 2019|
Indicative Index Dividends
Dividends are in Points