Wednesday, 8 July 2015

Daily Market Review 08.07.2015

It is evident that the Greece drama is positive for the U.S. dollar (USD) and on Tuesday, the currency remained broadly higher against other major currencies. This also came after data showed that in May, the trade deficit in the U.S. widened less than expected in May. 

According to the report by the U.S. Bureau of Economic Analysis, in May, the trade deficit climbed from $40.7 billion in April to $41.87 billion. Analysts had expected the May trade deficit in the U.S. to widen to $42.6 billion. The EUR/USD traded at 1.0940, down 1.04% and this decline came after officials in the eurozone told Greece not to expect debt relief any time soon. These officials also stated that the country needed to announce further reforms before anything concrete could be considered. 

On Tuesday evening, a eurozone summit was expected to take place in order to restart negotiations between Greece and its lenders. Meanwhile, the GBP/USD traded at 1.5428, down 1.15% while the USD/JPY traded at 122.19, down 0.31%. Against the currencies in Canada and Switzerland, the greenback traded higher with the USD/CAD up 0.89% to a 3-month high of 1.2764 while the USD/CHF gained 0.67% to trade at 0.9489. Also, the U.S. dollar index was at 97.29, up 0.89%.

The US dollar has been rallying all day on Tuesday which is a combination out of weakness in the euro as well as anticipations from the Fed. The greenback is trading at 1.0963 down 93 points as Eurozone leaders were disappointed by the lack of preparation by the Greek leaders at the Emergency meeting held today. The US dollar is trading at 97.15 up by 72 points paying little attention to disappointing export data. Binary option traders should be able to find several profitable trades tomorrow.

Gold has fallen to a new 2015 low trading at 1153.10 declining by $13.40 today. Traders can expect a jump early in the Asian session as investors close positions to book profits. Gold has been immune to the Greek crisis, as traders are betting on the Fed rate increases.

The Daily Market Review brought to you by Billionaire Forex UK in collaboration with UKoptions

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