Ecodata round up: Euro CPI, US consumer spending, and BoJ rate decision
InvestingOnline.com
31/07/2018, 17:10Busy Tuesday for investors as the financial market has gotten many critical economic reports around the world. US stocks and the dollar are up while the Euro doesn’t have what it takes.
First on the day, The Bank of Japan decided to maintain its interest rate unchanged at -0.1% for at least one more month. The BoJ also said that “the Bank will conduct purchases [of JGBs] in a flexible manner so that their amount outstanding will increase at an annual pace of about 80 trillion yen.”
The USD/JPY traded positive on Tuesday as investors welcomed BoJ stance and US economic data. The pair is trading 0.75% up on the day at 111.90, highs since July 20.
In Europe, the eurozone posted higher inflation but a lower than expected gross domestic product. Prices in the eurozone rose 2.1% in the last year to July. Prices rose faster than the 2.0% expected by the market, spurring the EUR/USD to highs.
Eurozone GDP advanced 0.3% in the Q2, less than the 0.4% expected. Year over year, GDP rose 2.2% in the second quarter, a worse than the anticipated slowdown to 2.2% from the 2.5% posted in the Q1.
EUR/USD is trading 0.05% down on the day at 1.1700. The cross was rejected at 1.1750 just after the US consumer income and spending data. The euro-dollar looks now ready to test 20 and 50 days moving averages zone around 1.1785 as supports.
More data in America showed that S&P Case/Shiller Home Price Index rose 6.5% in May, in line with expectations but a slowdown from the 6.7% posted on April.
Chicago PMI rose to 65.5 in July, more than the 62.3 expected by market and an acceleration from the 64.1 posted on June.
In Canada, the GDP rose 0.5% in May, a better than the 0.4% figure expected and a faster pace regarding the 0.1% monthly increase posted in April.
On forex, USDCAD is trading 0.20% down on the day as the pair is extending declines for the third day in a row. The cross was rejected by the 50-day moving average earlier this morning, and it is testing the 1.3000 critical support right now.
USDCAD daily chart July 31
