Forex Information and Trading News

Thin Calendar Today, but Financials Should Still be Under Pressure

With the news from ANZ and renewed focus at Financials, they should continue to underperform.

• Following Friday’s news of National Australia Bank selling off heaviest since September 2001 on credit concerns, this time around Australia & New Zealand Banking Group has forecast the biggest full-year profit drop since 1992, once again highlighting the widespread nature of credit-driven losses.
• Despite the slump in financial shares after ANZ Banking Group news, most Asian stocks have advanced on Monday’s trading, as higher metals prices were seen to benefit commodity and resource materials producers.
• With softer demand levels having already pushed the crude oil prices lower, signs of increased output by China and OPEC members has now pulled the prices to 7-wk low, with prices now resting on a key 38.2% Fibo support level (147.88 – 83.44) around $123.26.

Markets

• FX: The USD is staying in its range from the past to trading days. EURUSD vulnerable below 1.56.
• Fixed Income: 10-year contracts dropping sharpyly again on Friday. STIR Futures saying 93% chance of no rate change on the 5th of August.
• Stocks: European session mixed on Friday, US moderately higher. Asia also slightly higher this morning, but ASX is down 1%.
• Commodities: Crude Oil edging lower still, now $123.6. Gold and silver rather eventless.

Overnight

• GE Import Price Index MoM/YoY (Jun) out at 1.5%/8.9% vs. 1.0%/8.4% expected.
• SW Trade Balance (Jun) out at 8.2B vs. 10.3B prior.
• SW Household Lending YoY (Jun) out at 10.6% vs. 10.8% prior.
• E-Z M3 YoY (Jun) out at 9.5% vs. 10.3% expected.
• UK GDP QoQ/YoY (2Q A) out at 0.2%/1.6% as expected.
• UK Index of Services (May) out at 0.4% as expected.
• US Durable Goods Orders (Jun) out at 0.8% vs. -0.3% expected
• US Durables Ex Transportation (Jun) out at 0.8% vs. -0.3% expected.
• US Univ. of Michigan Confidence (Jul F) out at 61.2 vs. 56.4 expected.
• US New Home Sales (Jun) out at 530K vs. 503K expected.
• US New Home Sales MoM (Jun) out at -0.6% vs. -1.8% expected.
• NZ Trade Balance (Jun) out at -223M vs. -350M expected.
• AU HIA New Home Sales MoM (Jun) out at 4% vs. -5% prior.
• AU NAB Business Confidence (2Q) out at -8 vs. -4 prior.