July 25, 2016
Indicative Interbank spot sell rates only as of 9:00 AM PST.
PLEASE CALL THE FX DEPARTMENT AT (626) 279-3235 FOR THE MOST CURRENT RATE
United States (US) The Dallas Fed Index rose by 17.0 points in July to -1.3%, compared with market expectations for a decline to -10.0%. This index is still in negative territory and suggests that manufacturing activity in the Texas region contracted slightly. On an ISM-weighted basis, the index also contracted, indicating that the details were slightly more negative than the headline figure. Production increased slightly by 0.4%, the first increase in 3 months. New Orders fell moderately by 8.0%, the 3rd consecutive decline. Shipments increased slightly by 0.1%, the first increase in 3 months. Unfilled Orders fell modestly while Inventories dropped sharply.
Australia’s dollar traded at 74.69U.S. Cents at 10:41 AM PST and New Zealand dollar traded at 69.92 U.S. cents. Australia consumer confidence and New Zealand Trade Balance will be released later today 7/25/2016.
Euro traded at 1.0987 against USD at 10:41 am PST. Germany business climate index deteriorated only slightly in July to 108.3 from 108.7, ahead of the 107.5 reading that Ifo's survey of about 7,000 companies was expected to generate. While current assessment registered at 114.7 above expectations (114) in July.
British Pound exchange rate is 1.3142 against USD at 10:41 am PST. Manufacturing output and domestic orders saw firm growth over the past quarter, but both are expected to slow in the next three months, according to the latest quarterly Industrial Trends Survey from the Confederation of British Industry (CBI). Following a slowdown in activity towards the end of 2015, which spilled over into the first half of this year, the survey of 506 manufacturers showed that the sector experienced a decent recovery in the three months to July.
Japanese Yen traded at 105.88 per USD at 10:41 am PST. Japan posted its first half-year trade surplus since the 2011 Fukushima nuclear disaster, which sent energy import bills soaring and led to a string of deficits. Exports declined at an annualized rate of 7.4% in June after falling 11.3% the month before. Imports plunged 18.8% annually, following a 13.8% annualized drop in May. As a result, the country’s trade balance improved to ¥692.8 billion. The adjusted trade balance was ¥335 billion. Export demand has weakened this year, as a combination of soft international markets and a surging yen have weighed on Japanese producers. The Japanese yen approached three-year highs against the US dollar at the end of June following the United Kingdom’s decision to leave the European Union (EU).
Canadian dollar traded at 1.3216 per USD at 10:41 am PST. The Canadian dollar tumbled to the lowest in four months as oil, the country’s second-largest export, extended its slide and traders ramped up bets on greater monetary-policy divergence between the Bank of Canada and the Federal Reserve. The Canadian dollar declined for a fifth day, falling to the lowest since March 25.
Onshore Chinese yuan traded at 6.6785 per USD at 10:44 am PST and offshore Chinese yuan traded at 6.6865 per USD. China expanded efforts to steady the currency markets, with the central bank adding verbal support to the exchange rate after a week that saw it slip past a key level against the dollar. The People’s Bank of China will work hard to keep the yuan stable against a basket of currencies, Deputy Governor Chen Yulu said at a conference in Beijing on Sunday, adding that the authority will improve the policy framework for the yuan’s offshore market and cross-border services.
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.