Grexit is still an often used word

Jul 20, 11:48 am
Market news

The EUR/USD closed the week on a lower stance, the incertitude of Greece’s headlines and the emergent state of the deal continuing to keep pressure on the trend. These echoes will still make an appearance in the future, inflicting movements in the most important PMIs. Most investors see this deal just as a preliminary step in preventing a Grexit, foreseeing a third bailout with much harsher condition on the Greek economy. Looking at the raw data, we can see the upward slope of the Euro was quickly followed by a downfall, pressure continuing later. From Germany’s side, the sentiment fell within forecast. In the US the retail sales came out well below the forecasted amounts (once more). The setback was only temporary due to Yellen’s prevision of a future hike of the currency later this year.

As expected, GBP/USD shifted trend closing on a small profit at 1.5581. Inflation turned up low, but unemployment burst much over the forecasted values, reducing the upward trend . This week investors will focus on the retail sales indicator.

The Aussie continues its struggle, reaching a staggering six-year low. AUD/USD closed the week at 0.7370, losing 50 points. This week, there would be six releases. The Australian Consumer Sentiment came in dismal once again, while the Chinese trade surplus fell short from expectations. This limited the Aussie’s loss and the China’s GDP has been keeping steady.

Regarding the New Zeeland dollar, we can observe that it resumed the initial downfall, reaching thresholds below post-crisis lows, closing Friday at 0.64 for the first time since 2009. Investors consider that all focus should be on the RBNZ, whether it will keep the kiwi sunk or it will help him get back up. Taking a look at the indicators, the dairy auction fell the 8th time in a row, decaying with 10.7%. The quarterly inflation rose only 0.4%, under expectations.

Oil futures on the US market close on Friday with a loss of 4% over the course on last week, the lowest in three months. Oil prices dropped to $50 per barrel, pressure being kept by the supply saturation and the stronger US dollar.

Gold futures closed at the end of last week at the lowest level in 5 years. A big hit came from a sell-off from an important trader. According to analysts, China revealed their gold “stash” for the first time after 2009. August gold future fell $12 (1.01%) and closed on Friday at $1,131.90 per ounce (Comex). On the whole, the week’s loss was of 2.3%.

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