July 06, 2018
Pulse of the Market
· U.S jobs rose less than expected in June reined in the greenback’s recent rally
· The euro climbed after German industrial orders had a higher-than-expected jump in May
· Another key Brexit meeting will take place in today’s trading session
· The British Pound continues to find support and traded higher against the US Dollar
|The U.S Dollar moved off its lows against its rivals but remained under pressure amid mixed U.S economic data and a stronger euro ahead of the release of the Federal Reserve’s minutes. The U.S dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.11% to 94.09. ISM nonmanufacturing data for June showed an uptick to 59.1, beating expectations of 58.3. The services sector is a critical component of the US economy, accounting for roughly 80% of U.S. private-sector gross domestic product (GDP). A duo of reports, meanwhile, showed a mixed backdrop for the U.S. labor market as private payrolls fell short of forecasts, while initial jobless claims were in-line. Private payrolls grew by 177,000 for June, a decline from 189,000 in May, according to a report released Wednesday by ADP and Moody’s Analytics. That missed a economists’ forecast for an increase of 190,000. The U.S. Department of Labor reported yesterday that initial jobless claims for the week ended June 30 came in at a seasonally adjusted 231,000. The subdued post-holiday start for the greenback comes ahead of the minutes of Federal Reserve’s June meeting expected to reveal clues on the central bank’s monetary policy outlook. A rising euro also added pressure on the greenback amid better-than-expected German factory orders and signs that the U.S. was easing its tough stance on tariffs towards European Union carmakers. The U.S. ambassador to Germany reportedly said that President Donald Trump would suspend threats to impose tariffs on cars imported from the EU if the bloc axed duties on U.S cars. The safe-haven yen and Swiss franc were out of favor, however, despite looming U.S. and China trade tariffs expected to take effect today.|
|00:00||Japan Labor Cash Earnings (YoY) (MAY)||Medium||0.9%||0.8%|
|05:00||Japan Coincident Index (MAY)||Medium||116.1||117.5|
|06:00||German Industrial Production n.s.a. and w.d.a. (YoY) (MAY)||Medium||1.5%||2.0%|
|07:30||U.K Halifax House Prices (MoM) (JUN)||Low||0.2%||1.5%|
|08:30||U.K Unit Labor Costs (YoY) (1Q)||Medium||2.1%|
|12:30||Canada Net Change in Employment (JUN)||High||20.0k||-7.5k|
|12:30||Canada Unemployment Rate (JUN)||High||5.8%||5.8%|
|12:30||Canada Hourly Earnings Permanent Employees (YoY) (JUN)||Medium||3.7%||3.9%|
|12:30||U.S Change in Non-farm Payrolls (JUN)||High||195k||223k|
|12:30||U.S Change in Private Payrolls (JUN)||Medium||190k||218k|
|12:30||U.S Unemployment Rate (JUN)||High||3.8%||3.8%|
|12:30||U.S Average Hourly Earnings (YoY) (JUN)||Medium||2.8%||2.7%|
|12:30||U.S Average Weekly Hours All Employees (JUN)||Medium||34.5||34.5|
|12:30||U.S Trade Balance (MAY)||Medium||-$43.6b||-$46.2b|
|14:00||Canada Ivey Purchasing Managers Index s.a. (JUN)||Low||62.5|
|17:00||Baker Hughes U.S Rig Count (JUL 06)||Medium||1047|
The single currency climbed half a per cent to near three-week highs following strong German data, though gains were capped before the release of Fed minutes later in the day. German industrial orders bounced back in May with a stronger-than-expected jump after four consecutive monthly drops, as demand from domestic customers picked up. Overall, the EUR/USD traded with a low of 1.1648 and a high of 1.1718 before closing the day around 1.1692 in the New York session.
The Japanese Yen pair held firm supported by quarter-end buying as well as an absence of any fresh escalation in trade-related tensions between the United States and its major trading partners. Still, trade worries look set to dominate the market with traders increasingly worried about the impact of trade disputes. Overall, the USD/JPY traded with a low of 110.26 and a high of 110.70 before closing the day around 110.64 in the U.S session.
The British Pound erased an earlier advance to slip as Chancellor Merkel’s government is said to see the U.K’s Brexit customs plan as unworkable. Sterling fell on the news, which may undermine May’s proposal on how customs will operate ahead of a meeting with her own cabinet. The pound had earlier climbed as BOE Governor said the U.K economy is supporting the case for higher rates. Overall, the GBP/USD traded with a low of 1.3202 and a high of 1.3272 before closing the day at 1.3225 in the New York session.
The Canadian Dollar edged higher against its U.S counterpart yesterday, holding near its strongest in nearly three weeks, as the greenback broadly fell and investors’ hopes rose that European car makers could be spared from U.S. tariffs. Canada runs a current account deficit so its economy could be hurt if the flow of trade or capital slows. Overall, USD/CAD traded with a low of 1.3113 and a high of 1.3158 before closing the day at 1.3132 in the New York session.
The Australian Dollar ambled its way through yesterday’s trading session, lifting modestly in Asia before giving back those gains in Europe. As has been the case throughout the week, it continues to be highly influenced by the gyrations in the Chinese Yuan. Conflicting reports about China’s intentions with regard to the currency have circulated in the last 36 hours, Overall, AUD/USD traded with a low of 0.7359 and a high of 0.7406 before closing the day at 0.7374 in the New York session.
EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also issuing a bearish stance. The Relative Strength Index is above 53 and lies above the neutral zone. In general, the pair has gained 0.43%.
Currently, GBP/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 48 reading and lies below the neutral zone. On the whole, the pair has gained 0.09%.
Currently, the cross is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is indicating a bullish stance. The Relative Strength Index is above 44 reading and lies below the neutral region. In general, the pair has gained 0.20%.
This cross is currently trading above 14, 50 and 100 days moving average. Fast stochastic is indicating a bullish tone and MACD is also issuing a bullish signal. The Relative Strength Index is above 56 and lies above the neutral region. On the whole, the pair has gained 0.36%.
This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is indicating a bullish tone. The Relative Strength Index is above 48 and lies below the neutral region. In general, the pair has lost 0.03%.
|FOREX Closing Prices for July 05, 2018|
|Daily Pivot Points|
Sources: News, Charts & Quotes (Courtesy: Reuters, US Department Of Treasury)
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