USD Leads The Pack As GBP Falls

Sourced from: https://www.countingpips.com/2019/07/usd-leads-the-pack-as-gbp-falls/

GBPUSD was radically reduced today.  That is despite news that the former attorney general Dominic Grieve is about to obstruct Boris Johnson’s plans to get a no deal Brexit. Grieve plans to do this via a special turn to the Northern Ireland Bill which will prevent Johnson from proroguing parliament. GBPUSD transactions 1.2465 last.
USD has traded higher over the European afternoon on Tuesday with the indicator breaking back over the 97.10 degree.  The greenback was well supported after the recent interview between Trump and Xi that saw the set agreeing to re-commit to trade talks. With small on the FOMC meeting minutes today, focus remains on the information sheet tomorrow try and gauge the probability of a July rate cut.

EUR Requires Lower

Safe havens have had so far.  Gold has traded lower against the US Dollar. Meanwhile, the JPY has witnessed more powerful inflows, connected to weakness in equities prices. USDJPY trades 108.90 last, with recently broken back over the 108.78 amount, though USD has surrendered earlier gains daily. XAUUSD transactions 1388.50 continue, with cost having moved back beneath the 1391.61 support. But, it’s still above the recent 1382.06 lows for now.

Commodity Currencies Lower Again

Oil prices have experienced a morning so much with cost roughly unchanged on the session following moves greater overnight. Crude is still grappling with the 57.85 degree for the time being.  Later now we’ve got the API inventories record.  This will give the market the first look at US industry levels within the previous week, ahead of tomorrow’s primary EIA file, which could give oil some upside if a further drawdown is documented.

SPX500 Retreats

JPY Higher, Gold reduced

AUDUSD is trading back beneath the .6940 that morning, disappointingly.  The restoration in USD,in addition to the pullback in gold prices and equities, has struck AUD hard.  Focus stays on a further push lower for today.
EURUSD has been again today in the aftermath of the ongoing USD recovery. EURUSD is now trading firmly under the 1.1217 level support, which has been broken overnight after several efforts .  Present eurozone data weakness is maintaining the pressure on the ECB with hopes of impending easing continuing to assemble.
USDCAD is trading somewhat lower this morning with cost ranges from the latest evaluation of this 1.3136 level.  Subdued oil costs and a stronger US dollar have helped maintain USDCAD over the 1.3070 level.  USDCAD was under pressure during recent weeks following the rally in oil rates. On the other hand, the decline for now has been stalled by the current dip lower in petroleum prices. The BOC suits tomorrow that could add further support in case the bank keeps a resilient tone.
Risk assets are lower now also with all the SPX500 printing its third successive losing day so far. Price is presently trading 2959.93, sitting under the current 2963.89 level. Despite optimism about US-China trade negotiations in addition to the prospect of the Fed easing, a stronger USD seems to be running the show for the time being. SPX500 jumped out to fresh all-time highs last week on the rear of the Trump/Xi assembly , though earnings have lost momentum for the time being.

The Upcoming Swiss PPI

Sourced from: https://www.countingpips.com/2019/03/the-upcoming-swiss-ppi/

However, if the economy is stressed, then companies can not roll on the increased costs to their clients. This impacts their adulthood, which leads to further financial strain and potential recession.
Last month negative result was the very first time the monthly indicator fell below zero because mid-2017. This was a -0.1percent drop. To get a comparable unfavorable result, you have to go all of the way back towards the end of 2016.
Early tomorrow we’ve got the launch of the only major occasion on the economic calendar for Switzerland this week. Information for the Alpine nation has been arriving in line with expectations lately.
The information will be published at 08:30 CET (or even 3:30 EST). Expectations are around for PPI to have remained flat through February, which might be an increase over the negative 0.7% registered in January.

Therefore, inflationary pressures in the EU will probably spill in the Alps. However, the question is: Just how much?

Increases in import and producer prices generally suggests that companies are spending more money on materials to market to clients. And that means they will increase costs. If the market is performing well, clients are going to be able to consume these prices leading to increases in inflation.

Switzerland accounts for Producer and Import prices in its index, so it’s a strong indicator of consumer price inflation. Needless to say, consumers will be the largest part of core inflation, which the SNB follows when it comes to policy decisions.

Traditionally, if the PPI number comes out, there is a small transfer in CHF pairs when the amounts are outside of expectations. The effect we now see is so faded — that is, the pair returns to the mean.
We’ve got clues to this at the shrinking trade balance, where imports continue to grow while exports are beginning to lag. Somewhat paradoxically, Switzerland’s fastest growing export is jewellery.

The Trends

This is substantially larger than the 0.5% drop for the prior month.

Producer prices skyrocketed last August and are falling since. Should the predictions come out correct, this would be the first increase in just six months.
However, with the market just barely in growth land and subject to broader economic weakness at the European continent, traders are widely cautious of the prospect of unexpected bad news. Consequently, if there’s a miss with the data here, we can see some volatility at CHF pairs.

By Orbex
With the market underperforming (or expanding beneath potential) it’s also more challenging for suppliers and not merely retailers to raise prices. Even if the financial situation in Switzerland is doing nicely, they might be taking advantage of slower climbing costs among their neighbors. This enhances import and producer rates.

Processing the effect of your PPI number requires a little digesting, which includes reviewing other data. That may cause the market’s overreaction and following correction. However, this doesn’t happen all the time. Plus it is dependent upon how much of this market has priced in expectations, also.
This is partially because PPI isn’t followed as a measure for coverage choices. It is, however, a metric statistics stage that may indicate possible changes in inflation expectations.

Calculating Prices in different Currencies using Exchange Rates

http://www.youtube.com/v/nGvv08etNDI?fs=1

If you know the exchange rates of two currencies, you can calculate the prices of goods in one country in another country’s currency. This lesson walks you through several problems in which calculations of different exchange rates allow us to determine how much goods and services in one currency will cost in terms of another.
Video Rating: / 5

http://www.youtube.com/v/IANeqOfStbY?fs=1

Before a nation can have a sound economy, it must first have a sound monetary system. Unfortunately, in today’s world, there is not a single government that has a commodity based currency; every world currency qualifies as a fiat system. In the history of the world, every fiat currency eventually has failed. In this video, I talk about why that is the case, and how we can see this playing itself out right now in the current fiat systems.
Dollar purchasing power lost since 1913: 92%
Dollar purchasing power lost since 1971: 83% 10 oz. silver bar at spot from SD Bullion: https://sdbullion.com/sf