USD Stronger on Growth ExpectationsAugust 04, 2014 Posted by: Joe O'Leary
US growth is showing long-awaited signs of warming up, including sustained labor market improvement, as we enter the dog days of August. But geopolitical hotspots, such as in Russia and the Middle East, are likely to continue worrying markets. The euro traded at almost its lowest level versus the dollar since November as investors held the largest position in two years betting on a drop in the currency before the region’s central bank meets this week. Europe’s common currency slid 3.2 percent in the past three months as the European Central Bank cut interest rates to spur inflation that slowed in July to the weakest in almost five years. The pound snapped five days of declines before reports this week that economists forecast will show growth. India’s rupee strengthened as emerging-market currencies gained for the first time in eight days.
• U.K. July construction PMI came in at 62.4, above forecasts but slightly below the 62.6 peak seen in June.
• Portugal's central bank takes over Banco Espirito Santo in a EUR 4.9 bln bailout.
• Spanish unemployment fell 29.8K, less than expected and a clear slowdown in the pace of decline after the drop of 122.7K in the previous month.
08/05 USD: ISM Non-manufacturing composite
08/05 USD: Factory Orders(June)
08/05 EUR: EURO Retails sale(June)
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)
Nasdaq ...Read More