The USD becomes stronger
According to the latest forex trades data the United States dollar became stronger in relation to the Euro after the issue of quite positive US earning reports that provided a strong incentive for the stock market.
The Central bank of the US issued the earnings reports for the second quarter of the year that turned to be of $0.72 better than the expected $0.53. These news lead to the talks of banking sector of the country becomes more stable. Moreover the reports under consideration provided more than 6% growth of the Bank of America shares in pre-market trades. Thus the Euro decreased to the point of $1.5857 from previous $1.5908.
Due to Manuel Oliveri currency strategist at UBS the earnings data will be crucial for the changes of the USD for the coming days. He said that the markets would be probably concentrated on the earnings reports data of several blue-chips companies, especially of those involved into the banking sector. Furthermore the considerable numbers of the last week will also contribute the USD to keep this power to growth.
Nevertheless the markets will also be interested in the data provided by the Fed’s Beige Book and existing and new home sales. It is expected that these numbers will strengthen the idea that there is growing inflation in spite of the decreasing growth trends.
According to Antje Praefcke, currency strategist at Commerzbank the market is quite concerned about the slowing trends in the US and keeps this point of view.
As for the British pound it has turned to the growing trend after the sharp fall caused by the announcement of David Blanchflower at Bank of England who has said that the economy of the country is on its way to recession and the interest rates will decrease below the 5 percent point. Due to the last forex trades data the British pound was traded at $1.9961.
