iFOREX Daily Analysis : July 25,2017
iFOREX | Jul 25, 2017 05:21AM ET
The dollar steadied above thirteenth-month lows against most major currencies on Monday, as positive U.S. economic data helped offset U.S. political worries.
Markit's manufacturing and services flash surveys both showed the U.S. beating expectations.
However, the positive data was offset by weakness in the housing sector as sales of previously-owned homes fell 1.8% in June from the previous month, the National Association of Realtors said on Monday.
Regarding rumours on Russia meddling with the US elections, President Donald Trump's son-in-law and senior advisor Jared Kusher said neither he nor anyone in the Trump campaign team colluded with Russian officials over the US election.
In the week ahead, investors will be focusing on the outcome of Wednesday’s Fed meeting, ahead of data on Friday which will give the first look at U.S. second quarter growth.
Today, the Ifo Institute is to report on German business climate and the U.S. is to release data on consumer confidence.
GBP/USD
The pound was one of the main beneficiaries of dollar weakness, rising despite the International Monetary Fund (IMF) cutting its UK GDP growth forecast from 2% to 1.7% amid concerns about a slowdown in economic activity.
The dollar, after posting a two-week losing streak, attempted to make a positive start to the week, with manufacturing and services data exceeding forecasts and easing concerns about a slowdown in the U.S. economy.
In the week ahead, investors will be focusing on Wednesday’s Fed meeting.
Gold
Gold prices remained almost unchanged on Monday, as upbeat services and manufacturing data in the US was offset by weakness in the housing sector.
U.S. political uncertainty provides significant support to the precious metal, as President Donald Trump's son-in-law and senior advisor Jared Kusher, in his testimony to the Senate Intelligence Committee, said neither that he nor anyone in the Trump campaign team colluded with Russian officials over the US election.
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Gold traders are now shifting their focus towards Wednesday’s Fed meeting.
WTI Oil
Crude futures settled higher on Monday, after Opec producer Saudi Arabia pledged to lower crude exports in August while Nigeria agreed to curb production.
At a gathering of ministers from major crude-producing nations in St. Petersburg, Russia on Monday, Saudi Energy Minister Khalid al-Falih said his country would limit crude oil exports at 6.6 million barrels per day (bpd) in August, almost 1 million bpd below levels a year ago.
The Saudi energy minster added that the production-cut agreement could be extended beyond March if necessary.
US inventories from the American Petroleum Institute remain in focus for today for indications on the status of US demand.
US 500
The main US indices ended mixed on Monday, as gains in the Technology, Financials and Healthcare sectors led shares higher while losses in the Telecoms, Utilities and Consumer Goods sectors led shares lower.
At the close in NYSE, the Dow Jones Industrial Average fell 0.31%, while the S&P 500 index declined 0.11%, and the NASDAQ Composite index added 0.36%.
Some of the best performers in the session were Caterpillar Inc (NYSE:CAT) which rose 1.49% and Apple Inc (NASDAQ:AAPL) which added 1.21%.
The worst performers of the session were General Electric (NYSE:GE) which fell 1.85% and Nike (NYSE:NKE) that was down 1.67%.
In the week ahead, investors will be focusing on the outcome of Wednesday’s Fed meeting, ahead of data on Friday which will give the first look at U.S. second quarter growth.
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