31.07.13

Japanese purchasing managers' manufacturing index figures were out at 50.7, down from June which with a high of came in at 52.3. This is the slowest rate of growth in five months. Reserve Bank of Australia Governor, Glenn Stevens said yesterday that inflation data may indicate there is room for cuts to benchmark rate. Expectation that the RBA will cut the rate by 25 basis points is high. AUD/USD was trading at 0.9017 with a high of 90.74 and a low of 0.9006 so far.

The NIKKEI closed at 13668.30 down 201.50 or minus 1.45%

In Europe, the European Central Bank will most likely leave its benchmark interest rate unchanged at 0.5 percent tomorrow. The Bank of England will keep its bond-purchase program at 375 billion pounds and its key rate at a record low 0.5 percent, separate surveys showed. Unemployment rate figures are out for the EU and for their best performing member, Germany today, also the Italian Consumer Price Index is released this morning. EUR/USD is trading at 1.3263 with a high of 1.3268 and a low of 1.3240 so far.

The FTSE100 closed at 6562.71 down just 8.24 points or minus0.13% while the DAX closed at 8224.69 down 46.33 points or minus 0.56%

GDP for the US and Canada are released hours before the FOMC meeting announcement. The FED is unlikely to clarify whether tapering will begin in September, as financial markets expect, or later. The Federal Reserve Committee has said it will hold rates near zero until the unemployment rate hits 6.5 percent, provided the outlook for inflation does not push above 2.5 percent. USD/JPY is trading at 97.88 with a high of 98.15 and a low of 97.77 so far.

The DOW closed at 15520.60 down 1.38 or minus 0.01%

Have a nice day.