Investors await Federal Reserve Chair Yelen’s testimony

Tuesday, July 15, 2014

The US equity markets rallied strongly yesterday with the Dow Jones Index gaining more than 100 points (+0.66%), while the S&P 500 and Nasdaq also climbed higher by 0.48% and 0.56%, respectively. Citigroup posted fairly robust corporate earnings, beating analysts’ expectations and spreading optimism across the US markets. 

The Bank of Japan kept policy steady but cut growth target slightly for 2014. Asian equity markets extended gains, while the Nikkei index climbed higher by 0.64%.

The BRC retail sales survey showed a decline of 0.8% in the UK retail sales in June, missing analysts’ estimates of a 1.0% rise.

UK CPI inflation accelerated to 1.9% y/y in June, beating analysts’ expectations of 1.6%.  Bank of England’s Governor Mark Carney testifies to the House of Commons Treasury Committee regarding June’s Financial Stability report.

UK CPI Inflation rises to 1.9% in June

UKRPCJYR Index (UK CPI EU Harmon 2014-07-15 09-42-18

Furthermore, investors will be watching for the release of the German ZEW economic survey regarding current market conditions and economic sentiment. In the US, market participants will be keeping an eye on the releases of imports/exports prices data as well as retail sales and NY Fed manufacturing index.   

 The EUR consolidated around 1.36 against the USD in early trading, while sterling slid slightly lower within the range, trading just above the key 1.70 level. Investors await Federal Reserve Chair Janet Yelen’s testimony to the Senate today and to the House Committee tomorrow. 

EURUSD

EURUSD Curncy (EUR-USD X-RATE)   2014-07-15 07-35-09

  

Events for today:

 

0001

UK

Jun

BRC Retail Sales

0930

UK

Jun

CPI & RPI

0930

UK

Jun

PPI Core Output

1000

DE

Jul

ZEW Economic Survey

1330

US

Jun

Import & Export Prices

1330

US

Jul

NY Fed Manufacturing

1330

US

Jun

Retail Sales

1500

US

May

Business Inventories

All times UK Local Time

 

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