Stockpair traders should keep an eye on these events today:
USD Pending Home Sales (MoM)
US Recovery Is Back On Track
The news is the latest sign that the US recovery in the world’s top economy is well on track. The Commerce Department released figures showing sales of new single-family houses fell 8.1 per cent in June, tempering the positive vibe. While the S&P 500 ended marginally higher, the Dow and NASDAQ dipped slightly.
On currency markets, the euro bought Y137.02. The euro also fetched $1.3460 on Friday against $1.3464 in US trade. The euro had taken a hit this week owing to fears about the knock-on effect of planned fresh sanctions against Moscow for its support of anti-government rebels in Ukraine who the US blame for shooting down a Malaysian airliner last week. But it rebounded on Thursday after private research firm Markit said its index of manufacturing activity in the region jumped in July. The purchasing managers index (PMI) hit 54 this month, preliminary figures show, compared with 52.8 in June. A figure above 50 points to growth in the sector while anything below suggests contraction. However, Markit warned that the crisis in Ukraine was still clouding the outlook.
Oil prices were lower. US benchmark West Texas Intermediate for September delivery dipped seven US cents to $102.00 a barrel in afternoon trade, while Brent crude gained three US cents to $107.08.
The big events this week included a soaring HSBC PMI manufacturing release from China, an interest rate increase in New Zealand, and a significant drop in unemployment claims in the US.
Economic events were overshadowed by geopolitical pressures as violence and fighting in the Ukraine, Libya, Iraq and Palestine remained in the headlines. But to many surprised gold dropped on Thursday to trade in the 1290 range.
This coming week will see two major events that should keep traders on point. The FOMC two meeting and Fridays, nonfarm payroll release.