Forex: Wealth of data due out today
_iNVEZZ.com Thursday June 27th:_ Positive US economic data influenced the EUR/USD yesterday and the pair’s bearish movements continued in all trading sessions. The quote opened for the day at 1.3074 and ultimately descended to a 23-day low, shedding 0.91 percent.
GDP growth in the US for the first quarter of 2013 was yesterday revised down to 1.8 percent from the previously estimated 2.4 percent. Personal Consumption for the same period increased by 2.6 percent, as against 3.4 percent for the previous quarter. Personal Consumption Expenditures Prices and Core Personal Consumption Expenditures for Q1 q/q remained unchanged at one percent and 1.3 percent respectively.
Later in the day finance ministers from the European Union met in Brussels to discuss Europe’s banking union plans. Addressing the meeting, the European Central Bank president Mario Draghi said that the overall economic outlook for the euro zone still warrants an accommodative monetary policy and called for the Eurozone’s political leaders to implement economic reforms in order to spur growth.
Today’s Asian session started for the EUR/USD at 1.3015 and currently the quote is trading higher, at around 1.3031, seeking to erase yesterday’s losses.
The market will today pay close attention to Germany’s unemployment change and rate data, both for June, which are due out at 08:55 BST. At 10:00 BST comes Eurozone economic and service sentiment, business climate, consumer and industrial confidence, to be followed later by several US releases.
US weekly jobless claims, Personal Spending and Income updates and the Personal Consumption Expenditure Index are due out at 13:30 BST, followed between 15:00 and 15:30 BST by Pending Home Sales data for May and EIA Natural Gas Storage Change.
During yesterday’s New York session the pair fell to a three-week low, affected by the latest US releases. The quote opened at 1.5407 and closed at 1.5316, recording a daily low at 1.5296.
The Bank of England’s financial stability report released yesterday showed improvement in market sentiment, bank funding and credit conditions, in contrast to the situation in the Eurozone. The report warned that sharp rises in interest rates remains a threat for the UK’s economy.
The GBP/USD opened today’s Asian session at 1.5316 and has since risen to 1.5344, a session high so far in the day.
The UK’s Current account for the first quarter of the year is due out at 09.30 BST, along with the country’s GDP and Total Business Investment data for Q1 of 2013 (annual and q/q readings).
The USD/JPY started on a downtrend trajectory in early Asian trading yesterday and in the early-European session was back at a daily low at 97.22. The yen gained some ground on the dollar following the US GDP update and the quote lost 0.92 percent for the day.
The Japanese Corporate Services Price Index for May was yesterday reported as an annualised rise of 0.3 percent to 96.3, following a -0.3 reading in April.
Japanese investors sold a net 1187.5 billion yen in foreign bonds during the week ended June 21, according to a release by the Japanese Ministry of Finance. It marked the sixth consecutive week of net selling.
Japan’s All Industries Activity Index rose to a seasonally adjusted 0.4% in April, from 0.2% in the preceding month (revised up from -0.3%).
Today’s Asian session has seen the pair rise to 98.05, up 0.41 percent intraday and a session high to this point.
In the absence of Canadian updates yesterday and with strong data releases for the USD, the pair fell from a two-year high to a daily low at 1.0456. A high was later reached at 1.0525.
The pair is still under the influence of last week’s bullish statements by the US Fed indicating a possible reduction in its asset-purchase programme before the end of this year.
The opening quote in Asian trading today was 1.0467 and the price has fallen 0.42 percent so far on the day.
Traders’ eyes are on further US economic data due out later in the day.
The pair rose to a six-day high at 0.9342 yesterday, up 0.8 percent on the day.
The AUD is still under the strong influence of negative reports from China, concerning economic growth in Q2 and disturbing levels of ‘shadow debt’.
The Asian session today has seen the pair continuing its upward trajectory from yesterday, with the quote having reached a session high of 0.93375.
There are no Australian updates scheduled for today.
During yesterday’s New York session the USD edged higher against the Swiss franc, after having opened for the day at 0.9390, and eventually reached a 21-day high at 0.9442.
UBS’ Consumption Indicator of private consumption trends for May showed no change at 1.46.
In trading so far today, the pair is higher and is currently close to yesterday’s daily high at around 0.9424.
The Swiss National Bank’s Quarterly Bulletin for the second quarter of the year is due to be released at 15:00 BST today.
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