Dollar has maintained some strength after the EURUSD declined to 1.4150 before reports to show industrial production stalled and Greek economy stalled. EURJPY declined to 108.53 as traders bet that the ECB may cut interest rate as austerity measures slowdown growth while EURCHF moved up to trade highs of 1.0977 after data showed French economy stalled in Q2, AUDUSD traded at 1.0246 lows as data to show US consumer confidence weakened to lowest in two years, Gold declined to lows of $1748 after the new margin levels set by CME came into effect today and investors sold the metal to cover for margin requirements.
In other news, France, Spain, Italy and Belgium imposed bans on short-selling from today to stabilize markets after European banks hit the lowest level since the credit crisis. The Swiss Franc declined after reports of the SNB may try to peg the Franc to the Euro to control the strength of the currency. Chinese officials are allowing the currency to appreciate as slowing growth and gyrations in global currencies and stock markets threaten to spark a new recession.
Besides countering inflation and accelerating China’s shift to domestic-driven growth, a stronger Yuan may also signal a willingness to help shore up slumping confidence in the global economy. The US will probably expand at an average 2.3% annual rate in the second half of the year, about 0.1% less than projected last month while GDP will grow 2.4% next year and 2.8% in 2013, also less than previously estimated as estimated by market analysts.
Today’s calendar events consist of EU industrial production, Advanced Retail sales, consumer confidence and business inventories while Fed member Dudley speaks on the monetary policy.
By
M.Zohaib Gadit
Forex Trading Consultant, Shivani Financial
Address: Suite # 403, Portway Trade Centre, Main Sharah-e-Faisal
Opp. CDC Building, Near Nursery) Karachi,Pakistan.
Phone#: +9221-34328898-99
Cell: +92345-2259224
Web Site: www.shivanifinancial.com
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