In this series, we’ll explore the trends in consumer spending in recent months and try to shed some light on the retail sales data that will be released on July 14.
The EUR-USD (FXE) pair closed at a 0.21% fall against the US dollar (UUP) last week. Solid US jobs data on July 7, 2017.
The US Dollar Index (UUP) closed at 95.79 with a rise of 0.39% last week. This rise was a welcome relief for the dollar.
The S&P 500 Index (SPY) closed last week at 2,425.18, posting a rise of 0.07% in the holiday-shortened week. The S&P 500 witnessed some selling pressure on July 6, 2017.
Global markets (VTI) remained range-bound for most of last week, which was shortened by the July 4th holiday in the United States.
There are several important economic indicators to watch for this week, especially the following.
The UK’s manufacturing PMI recorded a weaker improvement in June 2017. It stood at 54.3 in June compared to 56.3 in May.
According to a report by Markit Economics, the final Eurozone manufacturing PMI (purchasing managers’ index) stood at 57.4 in June 2017 compared to 57.0 in May.
In this series, we’ll take a look at the final manufacturing PMIs for the major developed countries in June 2017.
The Japan Services PMI (EWJ) (DXJ) stood at 53.3 in June 2017 compared to 53.0 in May 2017. It met the market expectation of 53.2.
The final UK Services PMI stood at 53.4 in June 2017 compared to 53.8 in May. The figure didn’t meet the market expectation of 53.5.
The final Markit France Services PMI stood at 56.9 in June 2017 compared to 57.2 in May 2017. That beat the initial estimate of 55.3.
FOMC members after the latest policy statement have remained biased toward further rate hikes, but markets have questioned the Fed’s hawkishness.
The Japanese yen has depreciated against the US dollar by 0.98%, and the dollar-yen pair closed at 112.38 for the week ended June 30.
With the unemployment rate reaching a comfortable level and below the Fed’s 4.5% target, another strong month could add to the Fed’s optimism.
Reacting to the hawkish comments from Mario Draghi and a possible exit from the quantitative easing stimulus program, euro traders drove the currency higher.
According to the latest Commitment of Traders report, large speculators have increased their net bullish positions in the S&P 500 futures.
The currency markets are anticipating the June FOMC’s meeting minutes, which are expected to be hawkish.
In terms of Treasury auctions, the three-year, ten-year, and 30-year (TLT) bonds worth $56 billion are scheduled to be offered this week.
In this series, we’ll analyze how different asset classes in the financial markets have reacted to the sector rotation in the equity markets and the hawkish tone of central bankers.