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July 26: economy & currencies ★★★
Thursday, July 26, 2012 - 06:26
EUR/USD is consolidating in the $1.2120/65 area after yesterday’s jerk up as the ECB’s Nowotny suggested the ESM might get a banking license. The market’s attention will be focused on Mario Draghi’s speech in a panel discussion in London along with the bunk of England’s governor King – investors will look for Draghi’s reaction on Nowotny’s comments. Germany Gfk сonsumer сonfidence slightly rose from 5.8 in June to 5.9 in July, while the nation’s import prices declined in June by1.5% (vs. –o.6% expected).
The MSCI Asia Pacific Index (MXAP) of stocks advanced 0.4%, capping four days of decline. The high-yielding currencies strengthen on the back of the improved risk appetite and as the U.S. data on Friday may show growth slowed in the world’s largest economy.
NZD/USD rose after the RBNZ Governor Alan Bollard left benchmark interest rates on hold at 2.50% and said the economy should grow “modestly.”
AUD/USD strengthens for a second consecutive days and trades above $1.3000, while
USD/JPY demonstrates a modest growth after the safe Japanese currency strengthened for 6 consecutive days.
There are plenty of data released today: EU M3 and Italian retail sales at 08:00 GMT, US core durable goods and unemployment claims at 12:30 GMT, and US pending home sales at 14:00 GMT.