Forex4you - Analytics

    Forex4you

    550.75 6.50/10
    60% of positive reviews
    Real

    Pound weakens after disappointing retail sales

    GBP

    The pound weakened on Thursday after Retail Sales data showed a slump in June, introducing some doubt into expectations of an early rate hike.

    Retail Sales fell -0.2% month-on-month compared to May, failing to meet forecasts of 0.4% and falling from the previous month’s 0.4% result.

    Retail Sales inc autos and fuel rose by 4.0%, which was also below the 4.8% expected from 4.7% a year ago.

    The pound recovered marginally after hawkish commentary from BOE’s McCafferty, who said that the BOE should not leave its first rate hike too late if it wanted to make the rise gradually. He also said that Average Weekly Earnings including Bonuses were a good indicator for future inflation pressures and this particular metric showed a big jump in May.

    USD

    The dollar weakened on Thursday despite strong employment data.

    Initial Jobless Claims easily beat expectations of a drop of 1k to 280k by dropping 26k to 255k instead.

    Continuing Claims fell to 2207k from 2216k when analysts had estimated a rise to 2233k.

    Other data showed that the Chicago Fed National Activity Inde, rose more than expected by 0.9% from -0.5% previously, beating forecasts that it would increase by 0.8%.

    Leading Indicators in June, meanwhile, rose by 0.6% from a revised up 0.8% previously, when it had been expected to fall more deeply to 0.3%.

    EUR

    The euro rose overall on Thursday after data showed the narrowing of the combined budget deficits of member states of the euro-zone.

    Euro-area (EA 19) 1st quarter total government deficit continued its broad trend lower, by falling to 2.3% of GDP from 2.5% in the 4th quarter of 2014. E.U 28 government deficit also fell to 2.6% from 2.8% previously.

    On the data front Euro-zone Consumer Confidence fell by -7.1 from -5.6 when a lesser decline to -5.8 had been forecast. The result, however, was still relatively high compared to recent history.

    JPY

    The yen strengthened slightly on Thursday morning as the dollar dropped a few points and Japanese trade balance numbers came out broadly positive.

    The trade deficit at the world’s third largest economy narrowed sharply in June as exports rose while the energy import bill continued to decline. Japan´s exports surged 9.5% on year in June recording the fastest pace in 5 months and following a 2.4% growth in the preceding month. Meanwhile imports dropped 2.9% last month compared to expectations for a 4.0% annual decline and following the 8.7% fall in May.

    The trade balance as a result came to a deficit of 69.0 billion yen, shy of expectations for a 5.4 billion yen surplus.

    Despite the export pick-up, the BOJ this month cut its annual growth and inflation forecasts for Japan´s economy with economists warning weaknesses remained and the downgrade hinted at a weak second quarter.

    The economy grew 1.0% in January – March after recovering from recession in the last quarter of 2014, and business confidence remains strong. However consumer spending continues to struggle after last year´s sales tax hike, and the BOJ is expected to ramp up its monetary easing programme this year, to reach its inflation goal.

    In late trading in the London session the yen was trading at 124.09 per dollar.

    GBP

    The pound weakened on Thursday after Retail Sales data showed a slump in June, introducing some doubt into expectations of an early rate hike.

    Retail Sales fell -0.2% month-on-month compared to May, failing to meet forecasts of 0.4% and falling from the previous month’s 0.4% result.

    Retail Sales inc autos and fuel rose by 4.0%, which was also below the 4.8% expected from 4.7% a year ago.

    The pound recovered marginally after hawkish commentary from BOE’s McCafferty, who said that the BOE should not leave its first rate hike too late if it wanted to make the rise gradually. He also said that Average Weekly Earnings including Bonuses were a good indicator for future inflation pressures and this particular metric showed a big jump in May.

    USD

    The dollar weakened on Thursday despite strong employment data.

    Initial Jobless Claims easily beat expectations of a drop of 1k to 280k by dropping 26k to 255k instead.

    Continuing Claims fell to 2207k from 2216k when analysts had estimated a rise to 2233k.

    Other data showed that the Chicago Fed National Activity Inde, rose more than expected by 0.9% from -0.5% previously, beating forecasts that it would increase by 0.8%.

    Leading Indicators in June, meanwhile, rose by 0.6% from a revised up 0.8% previously, when it had been expected to fall more deeply to 0.3%.

    EUR

    The euro rose overall on Thursday after data showed the narrowing of the combined budget deficits of member states of the euro-zone.

    Euro-area (EA 19) 1st quarter total government deficit continued its broad trend lower, by falling to 2.3% of GDP from 2.5% in the 4th quarter of 2014. E.U 28 government deficit also fell to 2.6% from 2.8% previously.

    On the data front Euro-zone Consumer Confidence fell by -7.1 from -5.6 when a lesser decline to -5.8 had been forecast. The result, however, was still relatively high compared to recent history.

    JPY

    The yen strengthened slightly on Thursday morning as the dollar dropped a few points and Japanese trade balance numbers came out broadly positive.

    The trade deficit at the world’s third largest economy narrowed sharply in June as exports rose while the energy import bill continued to decline. Japan´s exports surged 9.5% on year in June recording the fastest pace in 5 months and following a 2.4% growth in the preceding month. Meanwhile imports dropped 2.9% last month compared to expectations for a 4.0% annual decline and following the 8.7% fall in May.

    The trade balance as a result came to a deficit of 69.0 billion yen, shy of expectations for a 5.4 billion yen surplus.

    Despite the export pick-up, the BOJ this month cut its annual growth and inflation forecasts for Japan´s economy with economists warning weaknesses remained and the downgrade hinted at a weak second quarter.

    The economy grew 1.0% in January – March after recovering from recession in the last quarter of 2014, and business confidence remains strong. However consumer spending continues to struggle after last year´s sales tax hike, and the BOJ is expected to ramp up its monetary easing programme this year, to reach its inflation goal.

    In late trading in the London session the yen was trading at 124.09 per dollar.


    To leave a comment you must or Join us


    By visiting our website and services, you agree to the conditions of use of cookies. Learn more
    I agree