July 25, 2017
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United States (US) Anadarko Petroleum Corp. is cutting spending on drilling in another sign that low crude prices may finally be forcing a pullback in the U.S. shale boom. The company, one of the largest oil and natural gas explorers in the U.S., is paring $300 million from its 2017 capital budget, lowering it to a range of $4.2 billion to $4.4 billion. The Woodlands, Texas- based driller also lowered its production forecast for the year and announced a second-quarter loss that was wider than analysts expected.
Australia’s dollar traded at 79.44 U.S. cents at 10:58 am PST and New Zealand dollar traded at 74.25 U.S. cents. Australia's consumer confidence improved during the week ended July 23, after falling in the previous two weeks. The consumer confidence index climbed to 115.1 from 112.5 in the preceding week. Moreover, this was the highest score since February. The increase in confidence was driven primarily by an improvement in consumers' views towards both current and future economic conditions. On another note, New Zealand’s trade surplus narrowed more than expected in May. The merchandise trade balance narrowed to NZ$103 million in May, from a revised $536 million surplus the month before, Statistics New Zealand said.
Euro traded at 1.1658 against USD at 10:58 am PST. German business morale hit a record high in July as manufacturers, shrugging off the impact of a strong euro, anticipated a surge in already robust exports from Europe's biggest economy. The Munich-based Ifo economic institute said on Tuesday its business climate index, based on a monthly survey of some 7,000 firms, hit its third record high in as many months with a rise to 116.0 from 115.2 in June. That beat a Reuters consensus forecast for a fall to 114.9.
British Pound exchange rate is 1.3042 against USD at 10:58 am PST. UK industrial production in recent months increased at the fastest pace since the mid-1990s, although its headline balance of total orders was lower than forecast. The CBI industrial trends survey recorded a balance of +10 more respondents saying their total orders were above normal than below, which was short of the forecast for a balance of +12 and down from the previous +16. On a brighter note, business optimism about the current situation for July rose marginally to a balance of +5 from the previous +1 when it had been forecast to be flat.
Canadian dollar traded at 1.2508 per USD at 10:58 am PST. Canadian oil producers, hit hard by persistently low crude prices and a recent increase in the value of the Lonnie, could get a boost from a potential U.S. ban on oil imports from Venezuela.
Onshore Chinese yuan traded at 6.7495 per USD at 10:58 am PST and offshore Chinese yuan traded at 6.7526 per USD. The Party’s Politburo held its regular meeting yesterday discussing economic developments in H1 and setting priorities for H2. Here are some highlights from the statement: Main indicators are better than expected in H1. The main tasks include: (1) disposing zombie enterprises; (2) reining in implicit government debt; (3) rectifying irregular financial activity and strengthening regulatory coordination; (4) stabilizing the real estate market and introducing long-term solution; (5) stabilizing private and foreign investment by improving market access and business environment and protecting IPR.
This market update is prepared by Cathay Bank for informational purposes only and does not constitute any form of legal, tax or investment advice, nor should it be considered an assurance or guarantee of future exchange rate movements or trends. This information is provided without regard to the specific objectives, financial situations or needs of any recipient. Cathay Bank does not make any representations or warranties about the accuracy, completeness or adequacy of this market update.