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>>>INT: Hi, I’m Martin Smith and this is your UFX Bank Week in Review. Today, we will
cover some of the major financial events of the past week and discuss how they impact
the global currency markets. But, before we cover headlines of the week, let’s look
at last week’s Risers and Fallers: The Euro – US Dollar pair had a solid performance,
showing gains for each day and added nearly 2.5 percent on the week. The pair was last
trading at 1.4523. After four consecutive weeks of negative performances,
the pound gained against the dollar this week, breaking the 1.6000 barrier to close at 1.6070.
All in all, the pound added just under 0.7 percent for the week beginning June 27th.
The USD/JPY had another mixed week, and once again, came up with a small gain. This week,
the pair added 0.41 percent and closed at 80.80.
The dollar fell every day this week against the CAD, dropping nearly three percent to
close at 0.9582. In commodities this week, August Crude Orders
surged after several consecutive weeks of losses. Orders rose 4.15% on the week to close
at $94.94 per barrel. Gold, on the other hand, had a mixed week,
which led to losses. The yellow metal dropped nearly 1 percent and last traded at $1,487
per ounce. In news this week, the euro rose for the first
time in four weeks against the greenback, after Greek lawmakers approved fiscal austerity
measures to thwart its sovereign-debt problems, raising optimism among investors.
The euro strengthened notably against the Swiss franc, more than it has in two years,
after the Greek Prime Minister’s package of budget cuts and asset sales was approved.
The Dollar Index fell the most since January and the Franc weakened against its most-traded
peers as investors turned to higher-yielding currencies. The European Central Bank is expected
to raise interest rates next week. The Swiss franc fell against its major peers
as investors sought riskier assets. The global economic atmosphere is one of minimal risk
appetite, due to low manufacturing outputs in the US and retail sales declining internationally.
The Pound posted its biggest weekly decline in a month against the euro as signs that
the U.K. economic recovery is stumbling, reducing bets for an interest- rate increase from the
Bank of England. Sterling fell versus 12 of its 16 major counterparts,
losing most against the Swedish krona and dropping to a 15-month low versus the euro.
Reports this week showed British consumer confidence fell and manufacturing growth unexpectedly
slowed in June while a Credit Conditions Survey by the central bank predicted mortgage demand
to drop in the third quarter.
Canada’s dollar had the largest weekly gain in 20 months versus the US dollar, as data
was released showing inflation rose more than predicted, which prompted bets that the central
bank will resume raising interest rates. The weekly gain upturned losses for the month
and quarter. New Zealand’s dollar reached a record high
against the U.S. currency after a survey by ANZ National Bank Ltd. showed a net 46.5 percent
of companies expect the economy will improve over the next year, up from 38.3 percent in
May. Turning to Asia, big Japanese manufacturers
turned despondent about business conditions for the first time since the global financial
crisis in the aftereffect of the earthquake in March. However, a Bank of Japan survey
showed analysts anticipate improvement in coming months.
The central bank believes the recent tankan survey results to be evidence that the quake's
blow on the economy will be temporary, with firms projecting increases in profits and
capital spending. The BOJ might strengthen its confidence on
output and Japan's economy at its rate review this month, although it will also likely signal
its concern about the risk of a global slowdown. Well, that is all the time we have for today.
I hope you’ve enjoyed this week’s review and I hope you will join us next week. Until
next time, be sure to visit us at UFXBank.com for simple, safe, secure trading. For UFX
Bank, I’m Martin Smith. Good luck and happy trading.
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