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Michael Michaud
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Michael Michaud is the founder of Invest2Success.com (http://www.invest2success.com/) and the Invest2Success Blog (http://invest2success.blogspot.com/). He has been investing and trading in the financial markets since 1989. He founded Invest2Success.com to empower individual institutional... More
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  • Forex Daily Update 0 comments
    Jul 31, 2013 5:05 AM

    Nothing changes in Eurodollar trade, all eyes in Fed later in the day ….

    Asian shares: Japan's Nikkei -1.45%, Hong Kong's Hang Seng -0.13%(07:00 GMT), Korea's Kospi -0.16%, Australia's ASX 200 0.19% and China's Shanghai 0.19%.

    European Central Bank President Mario Draghi favors releasing the minutes of the ECB's Governing Council meetings, according to an interview with German newspaper. "I consider it a necessary next step," Draghi told the paper. "Therefore, the ECB Executive Board will present a corresponding recommendation to the Governing Council for discussion and a decision." ECB Executive Board members Joerg Asmussen and Benoit Coeure earlier this week also spoke out in favor of releasing the minutes of the ECB's rate-setting meetings.

    British consumer confidence has jumped in July to its highest in more than three years, in an early sign that the economic recovery is gaining steam in the third quarter. Market research company GfK said that its monthly consumer confidence index rose to -16 from -21 in June. It was the highest reading since April 2010.

    Fed Decision-Day. Federal Open Market Committee releases a statement today after a two-day meeting in Washington. Unlike last month, the policy-making panel will not release economic forecasts, and Chairman Ben S. Bernanke will not be briefing the press afterwards. Possible clarification in the statement on the likely path of the Fed's bond buying, currently $85 billion a month.

    No change in the pace of bond purchases. None of the 54 economists surveyed by Bloomberg expected the FOMC to begin paring asset purchases at the meeting. Half predicted a dial-back of the program to $65 billion per month in September.

    Renewed dissents from St. Louis Fed President James Bullard and Kansas City's Esther George. Bullard has repeatedly voiced concerns about low inflation, while George has said the Fed's record accommodation risks leading to financial imbalances.

    Housing starts in Japan rose 15.3 percent in June from a year earlier, up for the tenth straight month, boosted by buying rush ahead of planned sales tax hike next April and anticipation for interest rate rises. Orders received by 50 major construction companies rose 21.9 percent in June from a year earlier.

    US Home prices rose in May by the most in more than seven years as the recovery in U.S. residential real estate gained momentum.

    Japan is considering an 8 trillion yen target for budget-deficit cuts over the next two years as officials debate how to proceed with a sales-tax increase that threatens to damage an economic rebound. The goal is based on the assumption that the consumption levy is raised as planned to 8 percent in April, from 5 percent now, according to two government officials.

    The Australian dollar fell for a second day after remarks by the head of the country's central bank appeared to open the door to another cut in interest rates. Since April, the Australian dollar has weakened 14% against the U.S. dollar amid slowing growth in China, its biggest trading partner.

    Watch today: German retail sales, EU jobs, US ADP payrolls.

    By Zulutrade

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