The USD index is holding near a 6-month high

Tuesday, July 29, 2014

Asian equity markets extended gains overnight with the Hang Seng Index rising 200 points (0.8%) above 24600. The Nikkei rallied above 15,600, gaining near 0.6%, despite the fairly mixed Japanese economic data. Japan’s retail sales fell by -0.6% in June, missing expectations of a -0.5% decline. Unemployment also rose unexpectedly to 3.7% in June versus estimates of 3.5%. Furthermore, Nomura posted its first quarter net income at 19.9 billion yen versus expectations of 26 billion yen, weighing slightly on market sentiment.  

A strong rally of Hang Seng Index 

HSI Index (Hong Kong Hang Seng I 2014-07-29 08-44-01 

The US equity markets opened the week on the positive side, as the Dow Jones and S&P 500 indices managed to finish the session yesterday posting modest gains after a volatile trading session. The USD continues its strong rally, holding above 81.0 near a six-month high against a basket of currencies. The euro traded near $1.343 down 0.06%. The dollar was up 0.12% versus the Japanese currency at 101.97 yen.

THE USD Index is holding above 81.0

DXY Curncy (DOLLAR INDEX SPOT)   2014-07-29 08-43-39

 

The United Nations Security Council expressed serious concerns yesterday over reports that radical militants have seized oilfields and pipelines in Syria and Iraq and warned that anyone caught trading in oil from the "terrorist groups" could face sanctions. The UN Security Council said in a statement that any trade in oil with Islamic State - previously known as the Islamic State in Iraq and the Levant - or al Qaeda's Nusra Front, would violate United Nations sanctions as both groups have been blacklisted.

Energy: Brent front month futures found support at $107.01 per barrel yesterday and finished the session at 107.57. This morning, Brent is holding near the 14-day MA at $107.6, struggling for clear direction as tensions in Middle East and ongoing uncertainty between Russia and the West continue to dominate the oil market. The release of the weekly API oil inventories report could provide an insight about the US crude and gasoline stocks.  

Brent fron month futures  

COU4 Comdty (BRENT CRUDE FUTR  S 2014-07-29 08-43-04 

Today, the main focus will turn to the release of the US Case-Shiller index as well as the consumer confidence figure for July and the Dallas Fed services index.

  

Events for today:

 

0930

UK

Jun

BoE Consumer Credit

1400

US

May

CaseShiller 20

1500

US

Jul

Consumer Confidence

1530

US

Jul

Dallas Fed Services Index

 

All times UK Local Time

More from: Myrto Sokou