18.07.2013

The JPY and AUD have both weakened against the USD yesterday. The Aussie has been losing value since late April when it had hit a high of 1.0580 before steady decline since. AUD/USD is trading at 0.9165 with a high of 0.9249 and a low of 0.9157 so far. Japanese Industry figures are released after their markets reopen; figures are expected to be up to 1.1% from 0.4% last time round. Sunday sees a vote in the Japanese Upper House, which is expected to bolster Prime Minister Abe’s party and his economic policy. USD/JPY was trading at 100.16 with a high of 100.24 and a low of 99.46 so far.

The NIKKEI closed at 14808.50 up 193.46 or 1.32%

Greek crisis worries are not showing any signs of improving. Yesterday the coalition government voted in favour of terminating thousands of public sector employees, including teachers and police. The tight vote 153/293, needed to release the next round of bailout funding, has seen protests increase along with some strike action. Italian markets were disappointed as the GDP forecast has been lowered to a negative 1.9% from a 1.0% expected contraction. The Bank of Italy hopes that GDP will rise to 0.7% growth next year. The United Kingdom retail sales figures will be released today. CABLE was trading at 1.5165 with a high of 1.5224 and a low of 1.5164 so far.

The FTSE100 closed at 6571.93 up 15.58 or 0.24% while the DAX closed at 8254.72 up 53.67 or 0.65%

Ben Bernanke, the Fed Chairman, gave no clear indication as to when the FED stimulus will be tapered off. The mixed and unclear message said the 85 billion USD per month bond buy could be reduced ‘somewhat more quickly’ than expected if the economic outlook and the employment situation improved, but on the other hand it ‘could be maintained for longer’ if the 2% inflation target not look achievable. Jobless figures for the US will be released today. The EUR/USD was trading at 1.3097 with a high of 1.3127 and a low of 1.3090 so far.

The DOW closed at 15470.50 up 18.67 points or just 0.12%

Have a nice day.