USD Continues to ClimbAugust 05, 2014 Posted by: Joe O'Leary
The dollar strengthened versus the euro before data that analysts forecast will add to evidence that U.S. growth is gathering pace, boosting the appeal of American assets versus those in Europe. The Dollar Spot Index traded at almost its highest level in five months as signs of economic revival in the U.S. increased Treasury yields over those of their developed-market counterparts to the most in four years last week. The yield difference between U.S. Treasuries and developed-market government bonds widened to 0.32 percentage point on July 30, the most since April 2010. The euro weakened the most this month on concern about the outlook for the recovery. Australia’s dollar dropped after the central bank left interest rates at a record low. The Korean won gained versus all of its 16 major peers as central- bank data showed the country’s foreign-exchange reserves increased to $368 billion at the end of July from $366.6 billion a month earlier.
• UK. Services PMI stronger than expected at 59.1 (market 58.0).
• The U.S. ISM-NMI is expected to hold steady in July from 56.0 in June
• US June factory orders are expected to grow by 0.7% with inventories growing 0.5%.
• Eurozone June retail sales rose 0.4% m/m, slightly less than anticipated.
• U.K. Markit services PMI beat expectations in rising to 59.1 in July, an eight-month high after rising from 57.7 in the previous month and indicating robust expansion in the sector.
08/06 EUR: German Factory Orders(June)
08/06 GBP: UK Industrial Production(June)
08/06 USD: US Trade Balance(June)
08/07 GBP: Bank of England Rate
08/07 USD: Initial Jobless Claims (Aug 2)
08/08 CAD: Unemployment Rate (July)
08/08 JPY: Consumer Confidence Index
08/08 USD: Whole Sale Inventories (June)
08/10 RUB: Russian Trade Balance (June)
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