Pages Navigation Menu

Orbex Daily Forex Analysis for October 16th 2014

Orbex Daily Forex Analysis for October 16th 2014

Fundamental Currency Analysis  – Orbex 

USD: The U.S. Dollar Index is currently off -0.2080 or -0.24% to 84.9390 after opening at 84.9090 in Asia earlier today. The Greenback declined sharply against most major currencies after the United States reported dismal economic numbers yesterday. Core Retail Sales declined -0.2% versus an expected increase of +0.2%, PPI declined -0.1% compared to an expected rise of +0.1%, Retail Sales dropped -0.3% versus -0.1% expected, Core PPI came out at 0.0% compared to an expected increase of +0.1%, the Empire State Manufacturing Index printed at 6.2, significantly lower than the 20.3 reading that was anticipated, and Business Inventories, the only number that beat expectations printed at +0.6% versus +0.4% expected. Also, the Fed’s Beige Book showed that economic activity in all twelve Federal districts was experiencing modest to moderate growth. Today’s numbers include Weekly Initial Jobless Claims (286K), Industrial Production (+0.4%), the Philly Fed Manufacturing Index (19.9), Capacity Utilization (79.0%), the NAHB Housing Market Index (59), Crude Oil Inventories (+2.3M) and speeches by FOMC members Plosser and Kocherlakota.

EUR: The Euro is trading steady against the U.S. Dollar today after gaining +1.2% yesterday. In a speech yesterday, “Towards the banking union – Opportunities and challenges for statistics , ECB President Mario Draghi said that, “The ECB has every interest to facilitate and promote integration and standardization also on the “input side, in the internal systems of the banks, for only this will ensure coherent information.” Elsewhere, the EU began a two week probe of Eurozone area governments’ draft budgets after yields surged on 10-year securities from Italy, Greece, Portugal and Ireland. Today’s data includes Eurozone Final CPI (+0.3%), a Spanish 10-year Bond Auction (2.08/1.5 last) and a speech by German Buba President Weidmann.

% | % | % | % | % | % | %

Leave a Comment

Your email address will not be published. Required fields are marked *