16.07.2013

Jul 16

FUNDAMENTAL ANALYSIS BY NSFX 16.07.2013

  • BY: Nati
  • July, 16th, 2013 8:11 +00:00

Reserve Bank of Australia meeting minutes released in the last few hours have strengthened the AUS even though the release could indicate there still could be scope for an interest rate cut in the future. AUS/USD was trading at 0.9179 with a high of 0.9193 and a low of 0.9084 so far. Asian shares followed yesterday afternoon’s US market performance and increased and the NIKKEI is performing well. USD/JPY was trading at 99.86 with a high of 100.06 and a low of 99.64 so far. The JPY could see some trading resulting from the upper house election in Japan next Sunday, a big result for Prime Minister Abe’s party will give further support to his economic policies which include a 2% inflation target.

The NIKKEI closed at 14599.10 up 92.87 or 0.64%

United Kingdom Consumer Price figures are out today, and the Euro Zone trade balance is released this afternoon.UK CPI is expected to increase, while the EZ trade balance is expected to remain unchanged. Spanish Prime Minister is facing calls to resign as a result of allegations of accepting illegal donations from members of the construction sector in 2009 and 2010. The Spanish situation is still one of the worst in the Euro Zone, with unemployment over 25%. EUR/USD was trading at1.3092 with a high of 1.3098 and a low of 1.3052 so far.

The FTSE100 closed at 6586.11 up 41.17 or 0.63% while the DAX closed at 8234.81 up 22.04 points or 0.27%

After the US Retail Sales figures came in worse than expected the USD is still performing positively, market sentiment for the currency seems to be that negative news means the FED stimulus will continue and therefore continue to prop up the Dollar. Although the recent negative figures indicate the bond buying will not taper for the moment, the expectation is that the FED will trim the USD85 billion in bonds it is purchasing each month late this year or early next. The interesting thing is to how the market will react to the cessation of stimulus, the result of which remains to be seen. US Consumer Price figures are released today, as are Industrial Production figures. CABLE was trading at 1.5119 with a high of 1.5142 and a low of 1.5091 so far.

The DOW closed at 15484.30 up 19.96 points or 0.13%

Have a nice day.