GBP/USD advances on rise in US jobless claims

GBP/USD advances on rise in US jobless claims

Sinduja Venkat

Good morning and welcome to today’s foreign exchange market commentary on 11th of July. 

Here are MyCurrencyTransfer.com’s top 5 currency highlights:

  • GBP/USD advances on rise in US jobless claims
  • EUR/USD surge continues post Bernanke comments
  • US equities following dim QE tapering prospects
  • BoJ makes no significant policy change this week
  • Australia housing loans data expected to reflect positively on RBA rate cuts

CURRENCY RATES OVERVIEW 

GBP/EURO – 1.1536
GBP/USD – 1.5148
GBP/CHF – 1.4292
GBP/CAD – 1.5742
GBP/AUD – 1.6338
GBP/ZAR – 15.0018
GBP/JPY – 149.6308
GBP/HKD – 11.7498
GBP/NZD – 1.9090
GBP/SEK – 10.0250

Mid-market rates as of 2013-07-11 04:00 UTC

Key releases in the next 24 hours that may affect currency date:

Australia: AUD Consumer Inflation Expectation (JUL), AUD Employment Change (JUN), AUD Unemployment Rate (JUN), AUD Full Time Employment Change (JUN)
Europe: EUR ECB Publishes Monthly Report
United Kingdom:  No Data
New Zealand: No Data
United States of America: USD Initial Jobless Claims (JUL 6), USD Monthly Budget Statement (JUN)
China: CNY New Yuan Loans (JUN)
Canada: CAD New Housing Price Index (YoY) (MAY)
Japan: JPY Bank of Japan Monetary Policy Statement, JPY Bank of Japan Rate Decision (JUL 11), JPY BOJ 2014 Monetary Base Target (JUL 11), JPY Kuroda Holds Post-Meeting Press Conference

GBP/USD advances on rise in US jobless claims

GBP/USD pair was advancing on Thursday, pointing to a higher region despite operating below its daily highs at 1.5196. Overall the pair had positive trading session on Thursday up by +0.94 per cent during US trading as it defends itself in the region of 1.5160.The GBP/USD moves performed better than market expectations however, the pair failed to stabilize above its key support region. This was following a spate of jobless claims data coming out of the US showing this figure unexpectedly rose last month.

EUR/USD surge continues post Bernanke comments

EUR/USD fell to fresh lows after the latest string of US data showed jobless claims unexpectedly rose last week, while imports prices missed estimations. EUR/USD moved lower on the data, sliding from 1.3050 toward the 1.3015 zone. However, reaction was better compared to yesterday’s sharp surge in the pair following Bernake’s dovish comments on QE policies in the US.

US equities following dim QE tapering prospects

The US stocks market rose sharply on Thursday as investor’s confidence improved after Bernanke indicated that QE tapering possibilities seemed less likely to begin in September. The S&P 500 performed its best day in over a month while the Nasdaq closed at record high in almost 13 years. The Dow Jones rose by 169.26 points or 1.11% to end the session at 15,460.92 while the S&P 500 advanced by 22.40 points or +1.36% to 1,675.02.

BoJ makes no significant policy change this week

The Bank of Japan has made no significant changes to its monetary policy this week, as expected by market participants. Despite declining inflation expectations, the central bank decided against further easing by placing more emphasis on recent strong economic data and the resilient stock market. Analysts have indicated that current inflation expectation is consistent with 2% inflation within 2 years. But it is becoming clear that BoJ will not ease further as long as USD/JPY remains at around 100 and the stock market continues to remain optimistic.

Australia housing loans data expected to reflect positively on RBA rate cuts

Thursday will witness Australia publishing housing loans data for May with NAB Economists forecasting an increase in the number of housing loans approved to have risen by 2.5%. The median forecast for this figure according to markets is 2.2%.
RBA expects that this set of data will be one point of reassurance that the rate cuts that it has enforced so far are having a positive effect on the economy.

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