Chinese data eyed

July 13, 2018

A relatively quiet Friday as far as significant announcements go, but the end of the week tends to bring with it some market movements.

The EUR/USD remained largely flat during trading yesterday. The pair opened at $1.16706 and looked set for a positive session in early trading, then it dipped to a low of $1.16484. It quickly reversed those losses as it climbed to a high of $1.16951 a few hours later. However, those gains were also short-lived as it limped to the close. It is currently trading at $1.16634. The GBP/USD struggled overnight as Donald Trump criticised Theresa May’s Brexit deal. The pair opened at $1.32010 and remained largely flat. It then dropped sharply to a low of $1.31793. It quickly erased those losses and rallied to a high of $1.32444. It remained near those levels for a few hours but started to drop off late in the session. In early trading this morning, the pair is trading at $1.31755.

The Dow enjoyed another strong session, climbing for most of day. The Dow opened at 24,720.97 and fell to a low of 24,688.79 during the first hour of trade. It rallied from that point, interrupted by short-term dips. It peaked at 24,934.83 and remained near those levels into the close. It has rallied in early trading, currently sitting at 24,959.40. The Dax closed higher, taking advantage of a weak euro and a rallying Dow. It opened at 12,458.59 and slid to a low of 12,405.90 a short time later. It ebbed and flowed from that point, but was able to eventually stabilise and lift itself to a high of 12,515.80 in the last hour of trade. The Dax closed at 12,511.55.

The day ahead is headlined by Trade Balance figures from China. As a huge importer of goods, China’s growth helps support smaller economies. With the trade war escalating, it will be interesting to see what effect this has on Chinese trade data. Other data set for release today includes:

Japan – Revised Industrial Production

UK – NIESR GDP Estimate, MPC Member Jon Cunliffe speaks

China – USD-Denominated Trade Balance, M2 Money Supply, New Loans

Europe – Swiss PPI, German WPI, ECOFIN Meetings

US – Import Prices, Prelim UoM Consumer Sentiment & Inflation Expectations, Fed Monetary Policy Report

 

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