Top 5 Things to Know Before You Start Trading
This Tuesday trading is quiet with no major data releases, EUR and AUD are higher while German imports are lower.
1 – Quiet Trading Session
It was a quiet trading session with an absence of major data releases and the European summer holiday season in full swing. Investors were now eyeing U.S. inflation reports later in the week for indications of whether the recovery in the dollar is sustainable in the longer term.
2 – USD Slightly Lower While EUR is Trading Strong
The US dollar (USD) inched down slightly in Asian trading on Tuesday but maintained most of the gains it made on last week’s robust employment data that kept hope alive that the U.S. Federal Reserve could still increase interest rates this year. Meanwhile, Euro (EUR) is trading firm against others so far. In particular, EUR/GBP is also resuming last week’s rally and breaches 0.9050.
3 – AUD Trading Higher than USD
The Australian dollar (AUD) edged higher against USD, while the New Zealand dollar (NZD) held steady after the release of mostly positive economic reports from both Australia and China. Market participants remained cautious ahead of the Reserve Bank of New Zealand’s (RBNZ) monthly policy decision, due later in the week.
4 – German Imports Lower
German imports fell more sharply than exports in June, pushing the trade balance to a 10-month high, data showed on Tuesday. The data are likely to increase criticism of conservative Chancellor Angela Merkel, who is expected to win a fourth term in an election next month, for not boosting investments enough as a way to increase imports and support other countries.
5 -Trump Presidency Persists Over NFP Report
Last Friday’s jobs report showed non-farm payrolls increased by a bigger-than-forecast 209,000 jobs in July, while average hourly earnings increased 0.3 percent to match expectations after rising 0.2 percent in June. While the news was dollar positive, the market doesn’t seem to have bought this story yet. It seems that the political instability caused by Trumps presidency is still hovering over the horizon.