Market Weekly Update 21/7-25/7

Good morning,

It was a positive week for US indices: S&P500 rose to 1,978.22 (+0.45% weekly), up 7.85 points and DJIA consolidated above 17,000 points at 17,100.18 (+0.90% weekly), up 152 points. Nasdaq outperformed other gauges and closed at 4,432.15 (+0.89% weekly), up 34.75 points. Commodities energy went in divergence and Crude Oil rose 2.05$ at 102.88 (+2.03% weekly) and Natural Gas closed at 3.94 $/BTU (-4.94% weekly). Precious metals closed off their intraweek lows and Gold lost 26$ at 1,311.40 $/oz (-1.94% weekly) and Silver closed at 20.92 $/oz (-2.52% weekly), down 54 cents.



In the currency market EurUsd lost 76 pips at 1.3526 (-0.56% weekly) and UsdJpy rose 1 pip at 101.34 (+0.01% weekly). GbpUsd lost 32 pips at 1.7084 (-0.19% weekly) and the Swiss Franc lost ground against the Greenback: UsdChf rose 63 pips at 0.8983 (+0.71% weekly). UsdCad lost all its intraweek gains and lost 1 pip at 1.0733 (-0.01% weekly). EurGbp closed on a multiyear low at 0.7916 (-0.44% weekly), down 35 pips. The Aussie Dollar outperformed the Kiwi dollar against the Greenback: AusUsd rose 3 pips at 0.9394 (+0.03% weekly) and NzdUsd lost 135 pips at 0.8677 (-1.53% weekly). Risk appetite in the equity market still high and volatility decreased sharply but could jump again in case of a sudden selloff. The most traded FX pair, EurUsd, still in a 200 pips range and a breakout above or below this area can kick off another wave, but is more likely that considering ECB action the US dollar might gain ground against the shared currency until the end of the 2014. This morning at 06:00 GMT the German Producer Price Index might increase the volatility of EurUsd. The day is not going to be rich of macro events and in US at 12:30 will be released the Chicago FED Activity Index. On Tuesday at 04:30 GMT in Japan the Industrial Activity index should be the most relevant event of the Asian session. At 06:00 GMT the Swiss Trade Balance is going to be an important data for the Swiss Franc. At 08:30 GMT will be released the UK Public Sector Net Borrowing and at 09:00 GMT the Euro Area First Quarter Government Debt. In US the calendar will be quite rich and at 12:30 will be released the Consumer Price Index followed at 13:00 by House Price Index. At 14:00 will be the turn of Existing Home Sales. On Wednesday Aussie dollar traders should pay attention to the CPI at 01:30 GMT. The most important event of the morning session should be the Minutes of the Bank of England. At 12:30 GMT the Loonie dollar will increase its intraday range with Retail Sales data and at 14:00 GMT the EuroZone Consumer Confidence data will close the macro events from Europe. At 14:30 GMT as usual in US the data regarding Crude Oil Inventory. At 21:00 GMT the Reserve Bank of New Zealand will decide the interest rate level, now at 3.25%. The volatility of the Kiwi dollar should stay high considering that at 22:45 GMT are going to be released Trade Balance data, Exports, Imports. At 23:50 GMT in Japan the Merchandise Trade Data is going to be relevant for the Japanese Yen. On Thursday at 01:45 GMT the Chinese Manufacturing PMI will have an impact on the trading day. At 08:00 GMT in Europe will be released the Markit Manufacturing, Services and Composite. At 08:30 GMT the UK Retail Sales data should give a direction to the British Pound. At 12:30 GMT in US will be the turn of Jobless Claims followed at 14:00 GMT by the New Home Sales Data. At 14:30 GMT EIA Natural Gas Storage Change data will increase the volatility of the commodity. At 23:30 GMT will be released in Japan the CPI data. On Friday at 01:00 GMT New Zealand Business Confidence will put the Kiwi under pressure considering that in the same week had been decided the rate level. At 08:00 GMT the German IFO will be followed at 08:30 GMT by the UK Gross Domestic Product Data. At 12:30 GMT US Durable Goods Orders will close the calendar.