Thursday’s Forex Outlook

US Dollar (USD)

The Dollar dropped against most of its major counterparties after a rebound in U.S. stocks and crude oil prices eased investor demand for safety. Wall Street rose for the second day in a row. NASDAQ and Dow Jones rose by 0.68% and 0.66% respectively. Crude oil jumped by 4.7% closing at 72.4$ a barrel, after crude oil inventories were released much lower than expected, at -8.4M, the least this year. Gold (XAU) strengthened by 0.6% closed at 944.8$ an ounce. Today, Initial Jobless Claims is expected at 548K vs. 558K previously.

EURO (EUR)

The Euro continued to rise versus the Dollar trading with a low of 1.4083 and with a high of 1.4266 despite the fact that German consumer prices posted their first annual decline in more than 22 years in July, dropping 0.7%. The drop was due to energy prices and the fear that inflation will turn positive again later this year.

EUR/USD - Last: 1.4235

British Pound (GBP)

The pound rose against the dollar as a result of the Bank of England’s Monetary Policy Committee that voted 6-3 to raise the amount it will spend as part of its quantitative- easing program by 50 billion pounds ($82 billion).Overall GBP/USD traded with a low of 1.6324 and with a high of 1.6587. Today, Retail Sales is expected at 0.40% vs. 1.20% previously.

GBP/USD - Last: 16535

Japanese Yen (JPY)

The Yen strengthened against the Dollar trading with a low of 93.67 and with a high of 94.96 triggered by a tumble in Chinese shares and investors that find refuge at the Japanese’s currency.

USD/JPY-Last: 94.40

Canadian dollar (CAD)

The Canadian Dollar advanced for a second day against the Dollar as crude oil, the nation’s biggest export, rose dramatically. The Canadian consumer price index decreased 0.9% in July. Overall, USD/CAD traded with a low of 1.0941 and with a high of 1.1112. Today, Wholesale Sales is expected at -0.10% vs. -0.30% previously.

CAD/USD - Last: 1.0960

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