Date: JULY08, 2018
Daily World Economic and Financial News
(CNBC): JULY08, 2018 ----The dollar hit three-week lows on Friday after data showed the U.S. economy created more jobs than expected in June, but a closely watched inflation gauge -- wage growth -- rose less than forecast and the unemployment rate increased. As a result, expectations dimmed somewhat that the Federal Reserve would raise interest rates a fourth time this year. The greenback had weakened earlier on Friday as the United States and China imposed tariffs on each other's imports, but the fall was muted as investors waited for the jobs report.
(CNBC): JULY08, 2018 ----U.S. nonfarm payrolls advanced by 213,000 in June, the Labor Department said. Data for April and May was revised to show 37,000 more jobs created than previously reported. The unemployment rate, however, rose to 4.0 percent from an 18-year low of 3.8 percent in May, while average hourly earnings rose 5 cents, or 0.2 percent, in June after increasing 0.3 percent in May.
(CNBC): JULY08, 2018 ----Gold fell on Friday, but bounced off session lows as the dollar weakened and equities rose, yet bullion was on track for a small weekly gain amid escalating U.S.-Sino trade tensions. Spot gold was down 0.29 percent at $1,253.66 an ounce, off the session low of $1,252.15 and headed for its first weekly gain in four weeks. U.S. gold futures for August delivery settled down $3 at $1,255.80.
(CNBC): JULY08, 2018 ----Oil prices were mixed on Friday, with short-covering pushing up U.S. crude futures while Brent slipped on global trade tensions and increased Saudi production. U.S. West Texas Intermediate crude futures ended Friday's session up 86 cents, or 1.2 percent, to $73.80 a barrel. Global benchmark Brent was down 23 cents at $77.16 a barrel by 2:29 p.m.
(REUTERS): JULY08, 2018 ----Sterling rose to an eight-day high on Friday as traders awaited the outcome of last-ditch efforts by Prime Minister Theresa May to unite her government over plans for Britain’s future outside the European Union.
(REUTERS): JULY08, 2018 ----Gold-backed exchange-traded funds (ETFs) saw outflows in North America and Asia, but saw inflows in Europe during June, the World Gold Council said. Silver gained 0.22 percent at $16.02 and platinum fell 0.16 percent to $839.15, both heading for a 0.3 percent weekly drop. Palladium added 0.3 percent at $950.80, on track for a 0.1 percent weekly drop. All three metals were headed for their fourth straight weekly decline.
(REUTERS): JULY08, 2018 ----The pound’s rise on Friday was largely down to dollar weakness following the release of U.S. employment data.
(REUTERS): JULY08, 2018 ----The pound rose 0.4 percent to as high as $1.3279 against the dollar in early Friday trading. It slipped 0.2 percent against a broadly stronger euro to 88.64 pence.
(BLOOMBERG): JULY08, 2018 ----American oil producers may find a new friend in India as they brace for a trade war with China that could curb U.S. shipments. Refiners in China were the top buyers of American crude oil in May, and have been regular importers since the U.S. revived domestic output and exports in recent years. But sales may slow amid a growing trade war between Beijing and the Trump Administration.
(WSJ): JULY08, 2018 ----The decision on who will succeed Mario Draghi as European Central Bank president is still a year away, but the jockeying for position is already under way. The 19 countries that use the euro are preparing for a delicate political dance that will decide who will steer the eurozone economy away from years of easy-money policies. The favorite, Jens Weidmann, the conservative president of Germany’s central bank, risks becoming a lightning rod for criticism of the nation’s dominance of the $14 trillion currency bloc.
(WSJ): JULY08, 2018 ----Federal Reserve officials at their meeting last month signaled they could raise interest rates over the next year to a level that no longer seeks to spur growth, formally ending the long postcrisis chapter in which the central bank rewrote its policy playbook to provide unprecedented economic stimulus. In a sign of the economy’s changing fortunes, officials intensified their discussions over how to manage rates if growth accelerates so much that unsustainable price pressures or financial bubbles emerge, according.
EUR/USD technical outlook
The EUR/USD pair is above the 23.6% retracement of the April/May weekly decline at 1.1720, after being below it for the previous two weeks, and while holding on to gains, a bullish case is not yet firm enough, given that for that scenario, the pair would need to extend gains beyond the 1.1850 region, where it topped post ECB an Fed's monetary policy decisions and where the pair also has the 38.2% retracement of the mentioned decline. The area happens to be the neckline of a double bottom figure of around 350 pips' height.
In the weekly chart, the pair is still developing far below a bearish 20 SMA, although the 100 SMA is advancing above the 200 SMA below the current level, while technical indicators are slowly picking up within negative territory, somehow suggesting that the pair may have found a bottom. In the daily chart, the pair managed these last few days to extend gains beyond its 20 DMA, which anyway maintains a mild bearish slope, and continues developing well below the larger ones, although technical indicators maintain strong bullish slopes at their highest in over two months, also supporting the case for further gains ahead. The 1.1780/90 region comes as an immediate resistance ahead of the mentioned 1.1850 price zone while beyond this last 1.1920 becomes a probable target. Supports these upcoming days come at 1.1720, 1.1660 and the 1.1600 price zone. (FXSTREET)
International & Financial Terms
1. Maturity Gap: The value of assets in a particular maturity bucket minus.
2. Peril: An event that causes a financial loss.
3. Profit Warning: An announcement by a company that future profits will be lower than announced.
4. Universal Banking: Banking that involves not only services related to loans but also those involved in making investment.
5. Sales Tax: A tax based on the selling price of goods.
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