*Daily Forex market overviews by MasterForex.com* - page 63
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Overview of the main economical events of the current day - 14/07/2014
The Canadian Dollar Sharply Dropped Amid Labor Market
On Friday 11 July the US dollar was traded mixed, having added 0.07% to the dollar index. The Canadian dollar sharply dropped after the release of weak Canadian Labor Market.
The US dollar slightly changed vs. most major currencies amid absence of any significant macro statistics in most of countries. Trades passed in a tight range. According to the results of the week the US dollar decreased vs. most major currencies, having lost 0.12% to the dollar index amid release of softer than expected FOMC Meeting Minutes. Most of all the US dollar decreased vs. the New Zealand dollar and the yen for over a week. The US dollar managed to increase only vs. the pound sterling and the Canadian dollar.
The most important statistics was released in Canada on Friday. The Canadian dollar sharply dropped to 2-week low vs. the US dollar, having lost 0.8% after the release of weak Canadian Labor Market. Such a sharp response was entailed by oncoming BOC Rates Meeting, which will take place next Wednesday. Canadian Unemployment Rate increased in June to semiannual high at the level of 7.1% from 7% in May, whereas no changes were expected. Unemployment Rate increases for the second month in a row.
Canadian Employment Rate reduced in June by 9,400 against the expectations of growth by 20,000. At that Part Time Employment Change reduced by 43,000, whereas Full Time Employment Change increased by 33,500. Employment favors for unappropriated facilities of the country’s economy, which may provoke the Bank of Canada to continue keeping neutral position and save deliberate position in its final announcement of the Meeting results on Wednesday.
On Friday the Australian dollar was traded slightly upwards; however, it decreased after the speech of RBA’s Stevens, having closed with a slight decrease vs. the US dollar. Stevens announced that RBA has no definite opinion in terms of expectations of interest rate decrease, and he expects considerable decrease of the Australian dollar in the nearest future. The New Zealand dollar also slightly decreased according to the results of the day.
The euro had almost no changes according to the results of the day amid ECB’s Nowotny speech, in which he announced that at the moment there is no need in asset purchase program, because the last package of ECB measures didn’t manage to affect the market. Though some positive results are obvious already – like softening of financing terms, and cessation of common European currency’s growth.
According to final data, German Inflation annual rate growth increased June to 1%, whereas in Spain it decreased to 0.1%. Despite recent growth of concerns in terms of one of the largest Portuguese banks, according to the results of the week the euro had almost no changes and saved its positions around $1.36. The pound sterling slightly decreased on Friday amid weak UK Construction the volume of which dropped in May by 1.1% m/m against the expectations of growth.
Meanwhile, FOMC Member Plosser announced on Friday that FOMC should prepare the markets to the upcoming increase of rates, which may occur earlier than it was expected. According to Plosser, FOMC approaches to its policy targets, and he wished that ill the end of the year the key interest rate would compose 1%. At the same time, FOMC Member Lockhart stated that it’s too early to signal about the rates, and he would like to save the rates near zero till the middle of 2015 or more.
By MasterForex Company