- Draghi: Euro zone has weathered Brexit
- Philly Fed index down from 4.7 to -2.9 vs. 5.1 estimate
- U.S. initial jobless claims at 253K vs. 254K forecast
- U.S. existing home sales up from 5.51M to 5.57M in June
- U.S. CB leading index up by 0.3% vs. 0.2% estimate
The Greenback slid slightly lower against most of its forex peers in the New York trading session but managed to advance against the Loonie. What’s up with that?!
Mixed U.S. economic data – Economic reports from the U.S. came in mostly stronger than expected, with the exception of the Philly Fed index. The reading for July fell from 4.7 to -2.9 to indicate industry contraction instead of rising to the estimated 5.1 figure.
On the flip side, initial jobless claims came in at 253K, lower than the 254K forecast and the previous 271K reading, indicating positive momentum in the jobs sector. The CB leading index rose by 0.3% versus the 0.2% estimate while existing home sales climbed from 5.51M to 5.57M in June.
ECB press conference – ECB Governor Draghi wasn’t his usual dovish self during the press conference following their decision to keep monetary policy on hold. He even said that the euro zone has weathered the Brexit, emphasizing how the government should focus on structural reforms instead of dropping hints on future easing.
Draghi explained that financial markets have reacted in a resilient fashion to the EU referendum so he didn’t seem so worried about the negative repercussions on the region’s growth just yet. He even added that the Brexit won’t likely have an impact on inflation expectations and that they don’t have enough information at this point to decide on policy action.
Major Currency Movers:
CAD – The Loonie was weaker across the board as crude oil prices continued to slide. WTI crude oil fell from $45.50/barrel level to $44.50/barrel (-2.19%) while Brent crude oil is nearing $46/barrel (-2.12%).
USD/CAD climbed from a low of 1.3025 to a high of 1.3103 (+0.59%), CAD/JPY pulled up to the 81.50 area but tumbled 87 pips to a low of 80.63 (-1.06%), EUR/CAD bounced off a low of 1.4322 to a high of 1.4435 (+0.78%), and GBP/CAD bounced off a low of 1.7163 to climb past the 1.7300 handle (+1.91%).
Watch Out For:
- 1:30 am GMT: Japan flash manufacturing PMI (48.3 expected, 48.1 previous)
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!