Currency markets - Spanish property 20 July 2006
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Currency Markets - Spanish Property Update (July 20, 2006)
Overview
The international currency markets are experiencing significant movements today, influenced by positive reactions on Wall Street and key economic indicators.
Market Summary
The FTSE-100 is set to open sharply higher after strong gains in New York. This positive shift stems from Federal Reserve Chairman Ben Bernanke’s dovish remarks and falling oil prices, allowing investors to momentarily overlook the ongoing Middle East crisis and enjoy some market optimism.
Wall Street Highlights
U.S. stocks rallied last night following reassuring comments from Bernanke, who suggested that economic growth is moderating and inflation remains under control. His statement, "Clearly we don't want to tighten too much to cause our economy to grow more slowly than its potential," was interpreted as a sign that the Fed might soon halt its cycle of interest rate hikes.
- Dow Jones Industrial Average (DJIA): Surged 212.19 points, closing at 11,011.42?"its strongest performance in 2006.
- Nasdaq: Rose by 37.49 points to end at 2,080.71.
U.S. Economic Indicators
Key data points to watch today include:
- 13:30: U.S. jobless claims for the week ending July 15.
- 13:30: Canadian wholesale sales for May.
- 15:00: U.S. leading indicators for June.
- 17:00: U.S. Philadelphia Fed report for July.
- 19:00: Minutes from the June 29 Federal Open Market Committee (FOMC) meeting.
Yesterday's rise in the U.S. June core Consumer Price Index (CPI) suggests a potential rate hike on August 8, but Bernanke’s less hawkish testimony adds some uncertainty. His approach indicates a gradual strategy to control inflation while minimizing economic disruption.
U.K. Market Insights
- 09:30: U.K. retail sales for June are projected to have increased by 0.2%. This suggests an improved quarterly performance, potentially boosting Q2 GDP growth to 0.7%, aligning with the Monetary Policy Committee's forecasts.
Japan Update
- 06:00: Release of the Bank of Japan’s Monetary Policy Minutes.
Currency Exchange Rates
- EUR/USD: 1.2590
- GBP/USD: 1.8435
- GBP/EUR: 1.4640
- USD/JPY: 116.85
These developments illustrate the dynamic landscape of the currency markets, driven by economic policies and global sentiments. Keep an eye on today’s figures for further insights.
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