Another Day another Loss for the Dollar

Daily Update - 1st August 2017

Yesterday’s Market

•             EUR Unemployment Rate & Consumer Price Index

•             USD Pending Home Sales & Chicago Purchasing Managers Index

Yesterday Explained

Another day another loss for the Dollar as, EUR/USD jumped to a high of 1.1846 on Monday on the back of a broad-based USD sell-off even though the 10-year US Treasury yield rose to 2.30% and the US-German 10-yr yield spread improved to 1.76. Furthermore, Dollar suffered further downfall with the announcement of Trump removing his Communications Director from his job which sparked loss of confidence in investors resulting a broad-based dollar sell off.

On the data front, Consumer Price Index from Eurozone came out positive. The data rose from 1.1% expected to 1.2% actual which suggested that European economy is strengthening which in return made investors buy more Euro. Later in the evening, US June pending home sales rose by 1.5% after a revised 0.7% decline in May, but a sharp decline in the Chicago PMI, down to 58.9 in July, weighed negatively on the dollar. All in all, it was another hair tearing day for the dollar.

Today’s Market

•             AUD RBA Interest Rate Decision & Rate Statement

•             EUR Gross Domestic Product, Markit Manufacturing PMI & Unemployment Rate

•             USD ISM Manufacturing PMI, Markit Manufacturing PMI, Core Personal Consumption Expenditure - Price Index & Personal Income

Today’s Focus

Very important day in terms data, to start of the day with, Interest Rate Decision is to be announced by the Reserve Bank of Australia. Followed up with RBA Rate Statement regarding this interest rate are made by the Reserve Bank Board, and are explained in a media release.

Eurozone will release their GDP report together with their Market Manufacturing PMI which captures business conditions in the manufacturing sector as a whole. And also, Germany will also release their Market manufacturing PMI along with their Unemployment rate which will have an impact for the EURO currency as a whole.

By evening US will release majority of reports, their ISM Manufacturing PMI, Markit Manufacturing PMI, Core Personal Consumption Expenditure - Price Index & Personal Income which will have an impact on the USD currency as a whole.