FX Markets Directionless

Daily Forex Fundamentals | Written by AC-Markets | Aug 19 09 09:40 GMT |

Market Brief Dollar weakened as risk appetite made its return to the markets after positive data from the UK and the European Union boosted the majors against the US Dollar. UK released its inflation report which showed that it remained flat for the month of July whereas a negative CPI data was expected while the yearly CPI data showed a reading of 1.8% but still below the Bank of England's inflation target of 2%. The Retail Price Index too showed a better than expected figures which shows that consumers are spending in the markets thereby boosting the economy and adding to recovery measures. The ZEW Survey which shows the economic confidence among consumers in the Euro Zone and Germany posted higher than expected reading of 54.9 and 56.1 respectively, the highest confidence data in 3 years. The pound moved up to a high of 1.6587 while the Euro moved up to 1.4154 after these economic releases on sentiments that recovery is returning in the European markets and consumers have started to start spending and shown confidence in the economy. Economic releases from the US showed that the Housing starts dropped in the month of July to 581,000 lower than the 599,000 expected figure while the construction permits for new houses too fell to 560,000 down 1.8%. also released were the Producer Price Index which showed that the wholesale prices dropped 0.9% while the PPI except for food and energy component dropped unexpectedly by 0.1% due to lower energy costs and high inventory of goods in warehouses and that inflation levels would not be a cause of concern for the FOMC. US stocks rose as better than expected earnings data were released for Home Depot and Target which also led to increase in oil prices. The Dow Jones Index rose 83 points to close at 9218 while the S&P 500 Index rose 10 points to close at 989 points. European stocks too rose for the day on the ZEW Confidence figures ending the day in the green. Today the important data to be seen would be the Producer Prices from Germany while UK would be releasing the Bank of England Minutes which could describe the additional 50 Billion Pound of stimulus added in the last rate decision meeting while giving further ideas on the economy and the rate decision in upcoming meetings. Also released would be the Leading indicators from the US. ACM FOREX Disclaimer: This report has been prepared by AC Markets (thereof ACM) and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Salesperson or Traders of ACM at any given time. ACM is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.