US Dollar drops despite strong durables
Following some very robust industrial data out of the US yesterday, the Greenback had an initial flutter towards highs against the Euro and Sterling. However, as the big Dollar failed to push through new levels following the Durable goods figures, investors sold off USD against the Euro.
US durable goods orders rose 1.4% in June, and the rise in May was revised up to 6.4% from 5.5% - not bad at all.
With very little in the way of economic data to get excited about today, attention moves to tomorrow’s US second quarter GDP figure. Strong data out of the US recently suggests a solid outcome for Q2 GDP, with markets expecting a figure of 3.5% (annualised). As the raft of robust economic data continues to flow from across the Atlantic, global investors continue to eye US interest rates with enthusiasm. The Fed Reserve has raised interest rates at nine straight meetings taking the fed funds to 3.25%. However, to put a spanner in the works, the Fed’s Beige Book released last night was considerably more subdued than recent months. Markets had expected an upbeat trend to continue – watch this space…
Locally, from the Nationwide housing survey this morning, house price inflation in the UK has dipped to its lowest level for over nine years. The survey said house prices in July rose 0.2% from the previous month, reversing June's fall, the annual rate of increase dipped from 4.1% in June to 2.6%, the lowest rate since May 1996. Only a year ago, annual house price inflation was standing at 20%!
And for those who are interested the Reserve Bank of New Zealand kept interest rates on hold overnight at 6.75%.
US durable goods orders rose 1.4% in June, and the rise in May was revised up to 6.4% from 5.5% - not bad at all.
With very little in the way of economic data to get excited about today, attention moves to tomorrow’s US second quarter GDP figure. Strong data out of the US recently suggests a solid outcome for Q2 GDP, with markets expecting a figure of 3.5% (annualised). As the raft of robust economic data continues to flow from across the Atlantic, global investors continue to eye US interest rates with enthusiasm. The Fed Reserve has raised interest rates at nine straight meetings taking the fed funds to 3.25%. However, to put a spanner in the works, the Fed’s Beige Book released last night was considerably more subdued than recent months. Markets had expected an upbeat trend to continue – watch this space…
Locally, from the Nationwide housing survey this morning, house price inflation in the UK has dipped to its lowest level for over nine years. The survey said house prices in July rose 0.2% from the previous month, reversing June's fall, the annual rate of increase dipped from 4.1% in June to 2.6%, the lowest rate since May 1996. Only a year ago, annual house price inflation was standing at 20%!
And for those who are interested the Reserve Bank of New Zealand kept interest rates on hold overnight at 6.75%.
posted by Drs Search @ 9:09 AM
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