Daily Market Analysis by FxGrow

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Daily Market Analysis – 20th July, 2015
By FxGrow Research & Analysis Team

Gold plunges to Five-Year Low as US Interest Rate Rise looms

Gold plunged to its lowest level in more than five years in the early Asian trading session as investor sentiments were hit on the backdrop of a strong US dollar amid prospects for higher US interest rates in the coming months.

The precious metal fell to drop as much as 5.5 percent touching a low of $1072, its weakest level since March 2010 when Shanghai Gold exchange opened trading early this morning.

Gold is considered as a safe haven investment in times of financial uncertainty, but is seen as a less attractive option in the times of rising interest rates. The prices of Gold tumbled on speculation that Fed is moving closer to raising interest rates after eight years.

“In the physical market this would not be possible because that would consume a whole lot of physical gold. But in the futures market, because it's all digital, as long as you find a buyer to bid for it then that would be possible” - Luke Chua, Bullion Star Singapore.

"Gold market looks very technically weak and the biggest buyer of all, China, is now selling gold as opposed to buying it on price dips. That's a recipe for weaker prices" - Victor Thianpiriya, ANZ Bank Singapore.

"I think there's further downside on the price once the dust settles and the focus shifts back to US dollar strength and the interest rate outlook. The risk of it hitting $1,050 is clearly elevated." - Victor Thianpiriya, ANZ Bank Singapore.

Greek Banks opened today after being closed for three weeks to restore normalcy with withdrawal limits remaining in place of €420 in a week.

“Capital controls and restrictions on withdrawals will remain in place but we are entering a new stage which we all hope will be one of normality” - Louka Katseli, Greek bank association.

Canada's annual inflation rose 1.0% in the month of June, while core inflation climbed 2.3% more than analyst expectations.

"Expectations are more biased for another rate cut. Core CPI is less meaningful to the bank than non-energy exports and gross domestic product at this stage of the game" - Jack Spitz, National Bank of Canada.

The New Zealand Dollar is under selling pressure on speculations that the Reserve Bank of New Zealand (RBNZ) is set to cut interest rates on Wednesday.

NZDUSD is trading at 0.6580 in the European trading session after it opened the week lower at 0.6505 today.

Crude oil prices have moved lower to $50.98 as Saudi Arabian exports fell to the lowest in five months.

Gold is trading lower in the Europe at 1111.47, while Silver is weak at 14.73

20th July 2015 – 10:31hrs GMT

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Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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Daily Market Analysis – 21st July, 2015
By FxGrow Research & Analysis Team

Reserve Bank of Australia minutes see steady Interest rates

Reserve Bank of Australia released its minutes from the July 7 meeting and the Board decided to leave the cash rate unchanged at 2.0 per cent.

Members noted that the exchange rate had thus far offered less assistance than would normally be expected in achieving balanced growth in the economy and that further depreciation seemed both likely and necessary - RBA minutes.

Members noted that global economic conditions remained consistent with growth in Australia's major trading partners being around average over the period ahead. Global financial conditions were very accommodative and would remain so even in the event that the Federal Reserve started to raise its policy interest rate later in the year - RBA minutes.

Expectations about the timing of the US Federal Reserve's first increase in the federal funds rate were little changed over the past month. Market pricing continued to suggest that the first increase would occur around the end of 2015. Although commentary by Federal Reserve officials suggested that it could be a little sooner than that, they continued to emphasize that the exact timing of the first increase would be less important than the pace of subsequent increases, which were expected to be gradual - RBA minutes.

In light of current and prospective economic circumstances and financial conditions, the Board judged that leaving the cash rate unchanged was appropriate - RBA minutes.

Greece received emergency bridging loan of €7.2bn from the European Union which was used to repay its debts. The Greek government made payments of €4.2bn to the European Central Bank, which consisted of €3.5bn loan plus €0.7bn interest.

Greece cleared its overdue debt repayments of 2.05 billion euros to the International Monetary Fund.

"The fund stands ready to continue assisting Greece in its efforts to return to financial stability and growth" - IMF.

Meanwhile heavy rush was seen in Greek Banks as queues formed outside bank branches as restrictions remain in place.

“Capital controls and restrictions on withdrawals will remain in place, but we are entering a new stage which we all hope will be one of normality” Louka Katseli, head of the Greek banking association.

Canada's Wholesale Trade fell for the month of May to C$54.5 billion led by a decrease in motor vehicle sales, according to Statistics Canada.

"Expectations are more biased for another rate cut" - Jack Spitz, National Bank of Canada.

UK public sector net borrowing rose to £8.58 billion for the month of June according to the Office for National Statistics.

Gold prices have consolidated near the $1100 level as investors shift their focus on prospects of higher interest rates in the US.

Crude oil prices have moved lower to $50.44 on supply concerns.

Gold is trading lower in the Europe at 1106.80, while Silver is weak at 14.82

21st July 2015 – 11:12hrs GMT

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Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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Daily Market Analysis – 22nd July, 2015
By FxGrow Research & Analysis Team

Bank of England policymakers edge towards Rate hike

Bank of England released minutes from its July policy meeting which showed that all the nine monetary policy committee members voted unanimously to holding both interest rate at its record low of 0.50 percent and the amount of asset purchases at 375 billion pounds.

In light of recent developments, all members thought it appropriate to leave the stance of monetary policy unchanged at this meeting. For a number of members, the balance of risks to medium-term inflation relative to the 2% target was becoming more skewed to the upside at the current level of Bank Rate - Bank of England.

The sterling effective exchange rate had risen by close to 3% over the month. The actual path that Bank Rate would follow over the next few years was uncertain, and would depend on the economic circumstances - Bank of England.

UK forward short-term interest rates had fallen following the Greek referendum and over the month. Absent that uncertainty, the decision between holding Bank rate at its current level versus a small increase was becoming more finely balanced - Bank of England.

For a number of members, the balance of risks to medium-term inflation relative to the 2 percent target was becoming more skewed to the upside at the current level of bank rate - Bank of England.

After the release of the BoE minutes the pound appreciated 0.4 percent versus the US dollar and is currently trading at $1.5627 in the European trading session.

Investors are expecting the interest rates in UK to increase in the May 2016, as indicated by the BOE Governor Mark Carney.

Greece's PM Alexis Tsipras seeks support of the Syriza party ahead of the crucial vote on reforms. The vote is expected to be passed with the support of opposition parties to start talks on a new €86bn bailout package for Greece.

EURUSD has recovered from a low of 1.0813 to trade at 1.0930 in the European trading session ahead of the crucial Greek vote.

"We have agreed to lighten the interest burden, lengthen the maturity of the Greek debt. It's something that can be done when the time comes, after the negotiation of a good program of development and assistance" - Pierre Moscovici, European Union Commissioner.

Reserve Bank of Australia Governor Glenn Stevens said an interest-rate cut is possible as the central bank prefers a weaker Australian dollar to support business and industry.

"That is why we have felt that, on balance, a somewhat lower exchange rate was likely to be a part of the necessary adjustment. That adjustment seems to be occurring, with relatively little disruption, and is having an expansionary effect" -Glenn Stevens, RBA Governor.

In UK public sector borrowing declined to 9.4 billion pounds for the month of June according to the office for National Statistics.

Swiss trade surplus rose to 3.578 billion francs for the month of June according to the Federal Statistics Office.

"The economic outlook for Switzerland has dimmed again, and while analysts expect to see the strongest economic momentum in the Eurozone over the next six months, the present state of the Eurozone economy is still rated as poor" - Credit Suisse

Crude oil prices have moved lower to $50.20 after industry data showed rise in US crude stocks.

Gold is trading lower in the Europe at 1089.54, while Silver is weak at 14.70

22nd July 2015 – 11:56hrs GMT

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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Daily Market Analysis – 23rd July, 2015
By FxGrow Research & Analysis Team

Reserve Bank of New Zealand Cuts Rates a Second Time

The Reserve Bank today reduced the Official Cash Rate (OCR) by 25 basis points to 3.0 percent.

Global economic growth remains moderate, with only a gradual pickup in activity forecast. Recent developments in China and Europe led to heightened uncertainty and increased financial market volatility. Particular uncertainty remains around the impact of the expected tightening in US monetary policy - Reserve Bank of New Zealand.

New Zealand’s economy is currently growing at an annual rate of around 2.5 percent, supported by low interest rates, construction activity, and high net immigration - Reserve Bank of New Zealand.

The New Zealand dollar has declined significantly since April and, along with lower interest rates, has led to an easing in monetary conditions. While the currency depreciation will provide support to the export and import competing sectors, further depreciation is necessary given the weakness in export commodity prices - - Reserve Bank of New Zealand.

A reduction in the OCR is warranted by the softening in the economic outlook and low inflation. At this point, some further easing seems likely - Reserve Bank of New Zealand.

Following the rate cut by the RBNZ New Zealand Dollar climbed to a one week high as NZDUSD touched a high of 0.6691 in the European trading session today.

Australian Dollar has declined over the week mainly led by a weakness in the commodity prices and as US economic data boosts expectations for higher interest rates by the Federal Reserve.

Greek parliament has approved the second package of reform measures required for getting the third bailout package of €86bn from the European Union.

The crucial vote saw 230 members voting in the favor, 63 members against it and 5 members abstained from the voting.

Following the vote EURUSD rose from a low of 1.0923 to trade at 1.0991 in the European trading session.

The Standard & Poor's rating agency has upgraded the credit rating of Greece from CCC- to CCC + with a stable outlook after Greece repaid the IMF and ECB.

"The upgrade reflects Greece's improved liquidity perspective following last week's consent, in principle, from the Euro group to the three-year loan program for Greece via the ESM, alongside the provision of €7.16 billion in three-month bridge financing to the Greek government, which it used on July 20 to clear its arrears with the IMF and the Bank of Greece and to repay the ECB” - Standard & Poor's rating agency.

In UK Retail Sales fell 0.2% in June according to the Office for National Statistics, London.

GBPUSD declined from a peak of 1.5665 to touch a low of 1.5589 due to unexpected drop in the Retail sales.

US Home Resales climbed to their highest level in 8 years in the month of June. Existing Home sales rose 3.2% to an annual rate of 5.49 million.

Crude oil prices have moved lower to $49.19 after US crude oil stocks rose 2.5 million barrels according to the EIA weekly report.

Gold has recovered its losses and is currently trading at 1101.80, while Silver is flat at 14.87

23rd July 2015 – 10:20hrs GMT

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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Daily Market Analysis – 24th July, 2015
By FxGrow Research & Analysis Team

Gold prices hit 5-year lows on weak China PMI, Global cues

Gold prices fell in the Asian trading session as globally investors see a slowdown in the Chinese Economy which is one of the top buyers of the precious metal.

Gold touched a record low of $1078.67 in the early trading session and consolidated at $1081.40in the European trading session today.

The China Purchasing Managers Index (PMI) showed a decline to 48.2 a 15-month-low, well below analyst expectation of 49.7 on backdrop of the recent stock market crash and weak global exports.

“In our opinion, the movements in the gold price earlier this year reflected market expectations that the events in Greece or the pullback in Chinese stocks were local – not global – risks and that the possibility of a disorderly outcome was/is still low. This does not necessarily mean that the market is correct. It simply reflects its current view” - World Gold Council.

“Investors now seem focused on the direction of the US dollar and the Fed’s monetary policy stance... The gold price already reflects a possible rate hike later this year and that the US-centered perspective is missing a more comprehensive view of the market” - World Gold Council.

“Whether it happens over before the end of the year, or later, we believe that the gold price should already incorporate, at least in good part, current market expectations of a rate hike. In our view, the gold price may be less susceptible to the first rate hike when it actually occurs and the main focus will be the pace at which the Fed signals it will continue raising rates” - World Gold Council.

“Should the conditions change and the risk of contagion or the unintended consequences of a Greek exit increase, we would expect to see a stronger reaction from the gold price. As a high quality, liquid asset, it is likely that many investors would use gold to protect wealth. Similarly, the recent Chinese stock market sell-off hasn’t resulted in a large uptick in the gold price thus far. A more substantial market correction in China, however, could spill over to other economies, increase uncertainty worldwide and make gold a more relevant hedge” - World Gold Council.

The markets are now focusing on a Federal Reserve rate hike in September this year as geopolitical tension appears eased for now.

"What a conundrum we face: commodities are shouting that the global economy is deteriorating, key emerging markets are already seeing major volatility, and yet the world's most important central bank is close to tightening monetary policy" - Michael Every, Rabobank

Following the Weak China PMI Australian Dollar has dropped to a low of $0.7285 in the European trading session, the lowest levels since 2009.

Crude oil prices have moved lower to $48.64 on concerns of global oversupply and weak demand.

Gold prices tumbled to 5 year low and is currently trading at 1079.92, while Silver is weak at 14.49

24th July 2015 – 10:55hrs GMT

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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Daily Market Analysis – 27th July, 2015
By FxGrow Research & Analysis Team

US Dollar weak ahead of FOMC Rate Decision

The US Dollar is weak ahead of the much awaited Federal Open Market Committee policy meeting this week on Wednesday.

According to the Analyst expectations 80% believe that Fed will hike interest rates in September and give a clear direction to the future rate hikes.

The Fed officials will meet on Tuesday and Wednesday and issue a statement at the conclusion of Wednesday’s meeting. Investors will be looking for directions as to whether the Fed is moving closer to raising interest rates in September this year.

Globally investors seem to be cautious if Fed fails to give any indication of a September rake hike in its policy meeting on Wednesday.

In the FOMC statement, look for only minor cosmetic changes to the post-meeting communique... do not expect policymakers to provide any new clues with regard to a potential rate hike in September - Deutsche bank.

In the minutes to the April meeting the FOMC had a discussion about whether or not to signal in the statements leading up to liftoff that a rate hike is likely coming in the near term. The Committee concluded that it would not signal a rate hike in the meeting prior to liftoff. Instead, the first hike would be decided on a meeting-by-meeting basis - JP Morgan.

The July FOMC statement should emphasize data dependence and eschew any overt signals about the timing of liftoff. We look for a cautiously optimistic assessment of the outlook as data have been somewhat more mixed since the June meeting. With the market pricing less than a 40% chance of a September hike, July communications should push those odds up slightly - Bank of America.

At issue is whether the FOMC will alter its forward guidance to prepare the markets explicitly for a near-term rate hike. If the Committee feels confident it can start normalizing policy in September, which has been our forecasted lift-off date, we believe it will adjust the language - Credit Suisse.

The Euro zone's manufacturing sector declined as the PMI for the Euro area came in at 52.2 for the month of July. German PMI fell to 52.2 while French PMI fell to 49.6 in the month of July.

"Eurozone economic growth lost only slight momentum in July amid the rollercoaster events of the Greek debt crisis during the month. The rate of expansion remained reassuringly robust to suggest that it was by-and-large 'business as usual' for the region as a whole" - Chris Williamson, chief economist at Markit.

Crude oil prices have moved lower to $47.87 due to a weak trend in Asia and slump in the manufacturing sector in China.

Gold has recovered its losses and is currently trading at 1099.57, while Silver is flat at 14.68

27th July 2015 – 09:55hrs GMT

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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Daily Market Analysis – 28th July, 2015
By FxGrow Research & Analysis Team

China Slowdown worries Global Investors

In China growth has fallen to the lowest level since 2009 as Shanghai stocks plunged by 8.48% on Monday, in spite of government efforts as the world’s second largest economy is heading towards a slowdown.

Globally investors are worried that the slowdown in China will pull other major economies including the US and Japan as Europe is already under pressure from its member countries.

Major concerns are that the foreign trade between US and China may get affected and the slowdown will affect industries in USA. Many of US companies are involved in trade with China which may get affected.

As the economy of China is driven by debt, the slowdown will start a financial crisis which could spread to the other parts of the world.

"Even if China's economy maintained its growth rate, the main contribution would be from public investment, so the effect on Asian economies and Japan's exports warrants due attention. The slowdown in exports and output are likely temporary" - Bank of Japan Deputy Governor Hiroshi Nakaso.

Many U.S. consumer companies are brushing aside worries that China's weakening economy and sputtering stock market will dramatically damage their bottom lines even with early trouble signs in recent earnings reports - Reuters.

The Chinese economy has faced difficulties this year as decelerating growth in factory output, retail sales and domestic investment has been compounded by a slowing property market - Reuters.

A slowdown in China will have a spillover effect on many countries including USA, UK, Australia, India and Europe.

In China Manufacturing activity plunged in the month of July to 48.2 hitting a 15 month low showing signs of a slowdown in the world’s second largest economy.

Greek Prime Minister Alexis Tsipras seeks support of the Syriza party to tackle the new 86billion euro EU-IMF bailout.

"Collective, democratic regrouping procedures are called for. Our strategy must be clarified... The congress procedure must be set into motion as soon as possible" - Greek Prime Minister Alexis Tsipras.

Greek PM is aiming to strike a deal with its European creditors soon, before dealing with the internal conflicts in the party.

Crude Oil is trading lower at $47.13 on China stock market collapse and oversupply concerns.

Gold is trading lower in the Europe at 1094.60, while Silver is weak 14.57

28th July 2015 – 03:02hrs GMT

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Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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Daily Market Analysis – 30th July, 2015
By FxGrow Research & Analysis Team

FOMC - September Rate Hike Remains Open

Federal Open Market Committee (FOMC) released its policy statement which showed that the members are locked in a debate on the timing of the rate hike as the US labor market continues to improve with solid job gains and declining unemployment.

The statement from the July meeting of FOMC suggests that September rate hike remains open as FOMC is on track to deliver a 25bp rate hike at the next meeting in September.

Information received since the Federal Open Market Committee met in June indicates that economic activity has been expanding moderately in recent months. The labor market continued to improve, with solid job gains and declining unemployment - FOMC.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects that, with appropriate policy accommodation, economic activity will expand at a moderate pace, with labor market indicators continuing to move toward levels the Committee judges consistent with its dual mandate - FOMC.

To support continued progress toward maximum employment and price stability, the Committee today reaffirmed its view that the current 0 to 1/4 percent target range for the federal funds rate remains appropriate. In determining how long to maintain this target range, the Committee will assess progress - both realized and expected - toward its objectives of maximum employment and 2 percent inflation - FOMC.

When the Committee decides to begin to remove policy accommodation, it will take a balanced approach consistent with its longer-run goals of maximum employment and inflation of 2 percent. The Committee currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run - FOMC.

Following the FOMC statement US dollar rose against its major counterparts with EURUSD touching 1.0948 and GBPUSD 1.5593 in the European trading session today. USDJPY crossed the 124 handle to reach 124.20 while NZDUSD is trading at 0.6614

Global equity markets are up with the Dow Jones industrial average up by 121.12 points to close at 17,751.39; S&P 500 gained 15.32 points to close at 2,108.57; the Shanghai Composite index was up 0.7% to 3,819.27; the Nikkei Stock Average was up 1.1%; Australia’s S&P ASX 200 was up 0.6% today as Fed remains on track to hike interest rates later this year.

Greek PM Alexis Tsipras is facing opposition from Syriza party over the €86bn bailout deal and a series of economic reforms as demanded by its European creditors.

"I would be the last person to want elections, if I had the secured parliamentary majority to make it through to the end of the four-year term" - Greek PM Alexis Tsipras.

German consumer confidence index remained flat at 10.1 points amid uncertainty about Greece's financial stability.

"German consumers apparently assume that the hard-won solution in the debt dispute with Greece will have negative consequences on the German economy" - GfK analyst.

UK Retail sales growth slowed in the month of July according to a report by the Confederation of British Industry (CBI).

CBI Retail sales balance dropped to +21 in July while analysts expectations were for a rise to +30.

Crude oil prices have stabilized at $48.91 following the FOMC statement.

Gold is trading lower in the Europe at 1086.71, while Silver is flat at 14.67

30th July 2015 – 07:57hrs GMT

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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Daily Market Analysis – 31st July, 2015
By FxGrow Research & Analysis Team

Greek Bailout - IMF won't back Greek deal without reforms

The International Monetary Fund said after its board meeting on Wednesday that it cannot officially join the €86bn third bailout deal for Greece as the country’s debt levels are unsustainable.

"As we've said before, the IMF can only support a program that is comprehensive. What do we mean? We mean a program that ensures medium-term sustainability" - IMF spokesperson, Angela Gaviria.

"In order to ensure that sustainability, that medium-term sustainability, there's a need for difficult decisions on both sides and by both sides. I mean, difficult decisions in Greece regarding reforms, and difficult decisions for Greece's European partners about debt relief” - IMF spokesperson, Angela Gaviria.

“According to its own rules, the IMF cannot participate in any new bailout. I mean, they’ve already violated their rules twice to do so, but I don’t think they will do it a third time” - Greek finance minister.

Germany has insisted that IMF has to be involved in the new 86 billion euro bailout deal.

Greece needs to repay 3.2 billion euro to the European Central Bank on August 20 and with the recent IMF move will make it difficult for Greece to receive the new bailout funds in time.

"There is a need for difficult decisions on both sides... difficult decisions in Greece regarding reforms, and difficult decisions among Greece's European partners about debt relief" - IMF official.

Greece's talks with its International creditors for a €86bn third bailout deal continue with top officials from the European Union and International Monetary Fund meeting key ministers in Athens.

Greek Prime Minister Alexis Tsipras is seeking support from Syriza party for accepting the tough bailout as demanded by its European creditors.

“We are telling the Greek people loud and clear and with no remorse that this is the deal we managed to bring to them and if there is someone who thinks that they could have achieved a better deal, let them come out and say that” - Greek PM Alexis Tsipras.

US Economy grew by 2.3% in the second quarter of 2015 according to the Commerce Department. Initial jobless claims rose by 12K in the week ended July 25 according to the Labor Department.

In Japan household spending declined for the month of June showing signs of contraction in the world's third biggest economy. Annual core consumer inflation rose 0.1% in June.

"There's a risk the recent softness in exports and output may hurt corporate sentiment just when companies were beginning to turn more aggressive on investment" - Koji Ishida, Bank of Japan board member.

New Zealand Business Confidence declined to the lowest level in 6 years according to ANZ Business Outlook.

Crude oil prices fell to $47.66 on concerns of oversupply after OPEC indicated there would be no cuts in production.

Gold is trading lower in the Europe at 1083.44, while Silver is weak at 14.62

31st July 2015 – 12:23hrs GMT

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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Daily Market Analysis – 03rd Aug, 2015
By FxGrow Research & Analysis Team

US Consumer Sentiment declines to the lowest level in the last eight months

Consumer confidence slipped a bit in the July 2015 survey. A disappointing pace of economic growth was the main reason for the small decline in consumer confidence - University of Michigan.

The Sentiment Index was 93.1 in the July 2015 survey, down from 96.1 in June. A disappointing pace of economic growth was the main reason for the small decline in consumer confidence. Importantly, consumers still anticipate that the expansion will continue - University of Michigan.

While expected changes in unemployment have been trendless at positive levels in the past year, the July survey was the first since last September that consumers on balance expected no significant change in the rate of joblessness during the year ahead - University of Michigan.

US economy growth has been low this year, with an annual rate of growth at just 0.6% from January to March 2015. Most of the economists still see that the Federal Reserve will raise its interest rates later this year.

Gold has opened the week lower with prices down as much as 7 percent after Federal Reserve indicated the prospects of raising its interest rates this year.

Investors are awaiting the US Non-Farm Payrolls data this week which will provide fresh clues on the timing of the rate hike and the strength of the US economy.

In China manufacturing activity declined to the lowest level in 2 years showing signs of a further slowdown in the later part of the year. Caixin manufacturing PMI declined to 47.8 in the month of July the weakest level seen since 2013.

Eurozone Consumer Inflation rose to 1.0%, while the unemployment rate remained at 11.1%

In Canada Economic output shrank 0.2% in May according to the data released by the Statistics Canada.

Greek Stock markets opened today after a 5 - week shutdown, with restriction put in place due to capital controls.

The Greek benchmark index slumped by 19 percent to 649.48 reaching the lowest levels seen since September 2012.

Greek Banking sector was in spotlight as their shares were down due to Recapitalization, Bad debts and they are not expected to make any profits this year.

Crude oil prices fell to $46.41 on weak China data and oversupply concerns.

Gold is trading lower in the Europe at 1092.90, while Silver is weak at 14.69

03rd Aug 2015 – 10:14hrs GMT

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.