E-Money Blog - Forex, CDF, Commodities - daily news and rates

The dollar trade in Friday has been relatively calm and the market tendencies have been driven by few economical data and the commodities. The profit of Citigroup shown better results than expected, leading to purchase on the stock market and the dollar.

The chilling emotions in Friday allowed the oil prices slight fall, helping to the dollar once again. In the morning hours of today trading day, the crude oil had a trade on levels $129 per barrel. On Monday will be announced the values of the leading indices expected around -0.1%.

The euro had a top-limit trades, when the consumer prices for Germany came out with a better result - 0.9% against 0.7%, however the euro did not succeed to keep the positions it gained due the USA economical data, keeping only high trade against the EUR/JPY at levels 169.

The Japanese yen has lost ground against the majority of the currencies, when the investors came out with intensified appetite for risk positions thanks to the positive US banks data, coming out with better values than expected. Monday is a national holiday and the markets will remain closed. The British pound had a trade mainly in range due the American power data and the rumors for good news to happen with the Government public credits.

The dollar got more expensive against the more of the major currencies during yesterday’s trade for a second day and this is due the slip out from the bottom of the stocks that happened in Tuesday. The profit of JP Morgan came out much better than the expected values helping this way the US currency.

The economical data were relatively positive with the initial housing over a million - 1,066 against than the predicted value of 0.960. The weekly job requests went up a bit over the expectations for 360K and reched 366K. The Euro consolidated the losses, trading in range, with a pressure coming out from the falling crude oil prices and combined with the lack of important economical data for the European union.
Today, from the economical calendar will be shown the Index of the production prices for Germany expected to be 0.7% and the trade balance for the European Union expected to be around 0.9 billion euros.

In the GBP market there was no data of a great influence and the currency had a range trade around the psychological level of 2.0000. today the attention will fall on the loans in the public sector that are awaited to be around 7.4 billion. The Japanese Yen had a hard trade when the carry trade deals got back to life on a base of positive movements on the stock market. All crosses made a profit especially on the GBP/JPY. In total, the yen got a trade of 104.76 in the bottom and 107.11 at the top before closing the NY session at 106.25.

Unexpectedly, the dollar rebound quite successfully thanks to the positive data for the US economy - the crude oil inventory surprisingly came out with a growth with 3 million barrels leading to a huge sell out of the black gold, reaching value of 132 dollars per barrel. Later on, the barrier was broken and the oil went up to $134, however the fall in the price supported the US currency. The consumer prices index in June came on top to 1.1% with expectations of 0.7% as the May value was 0.6%. This confirms that the inflation is turning into a problem, lighting speculations about the raise of the interest rates. The industrial production went to 0.5% together with the Level of Capacity Usage index - 79.9% from 79.4% in May. In the minutes of US Federal Reserve for the 24-25 June meeting become clear, that some members have expressed some concerns that the raise of the interest rates “will be suitable, very soon”.

Looking ahead we expect the data for the weekly labor petitions expected on 380K after the sudden fall to 346K. The Philadelphia index would be -15 for July after its fall to 17.1 in June. The Euro sympathized the crude oil and the gold, however the mood went a little depressive when the economical conditions continuously have been going worse. The consumer prices index has been confirmed on 4% annual basis. Today will be announced the data for the manufacture in the housing sector with previous values of 0.8% monthly and -2.4 annual basis.

The Japanese Yen succeed to win solid advantage when the European stocks had a low trade, however the positive USA data turned them back. EUR/JPY had a trade of a weekly bottom of 165.35.