Investors Still Waiting for Monetary Stimulus?
The euro pulled back from a one-month high against the U.S. dollar today, however still remained supported by the optimisic hopes for progress regarding the euro zone debt crisis. The euro found support following the announcement from ECB President Draghi last week, stating that the bank may jump start its bond buying program in order to lower Spain and Italian borrowing costs. However, markets are still hesitant with concerns on the effectiveness of this program. The euro zone will be producing a report on investor confidence today.
The U.K. Halifax House Price Index report was just released, measuring the change in the price of homes and properties financed by Halifax Bank Of Scotland (HBOS). Analysts had expected sata to fall -0.5%. however the data fell more-than-expected to a seasonally adjusted -0.6%. With this data, things are looking a bit bearish for the GBP.
In the U.S. the unemployment rate jumped unexedtedly to 8.3% from 8.2%, keeping market sentiment up with the ongoing expectations for further monetary stimulus from the Federal Reserve. Today U.S. Federal Reserve Chairman Ben Bernanke will be speaking as markets keep a close watch on his comments. Binary options traders should keep an eye on this event, as his comments will most likely cause a short-term positive or negative trend.
Crude oil futures dropped in Asian trade with news on Tropical Storm Ernesto headed towards the Caribbean Sea, stearing clear of the Gulf of Mexico and Tropical Storm Florence weakening. Oil prices rose last week following the U.S. job report, with 163,000 net nonfarm payrolls in July, exceeding expectations by 63,000. Following this data and the news on Ernesto and Florence, investors sold for profits today.