Analytics, News, and Forecasts for CFD Markets: currency news — 24-07-2017.

04:00 Eurozone ECB's Yves Mersch Speaks

08:00 Germany IFO - Business Climate July 115.1 114.9

08:00 Germany IFO - Current Assessment July 124.1 123.8

08:00 Germany IFO - Expectations July 106.8 106.5

10:00 United Kingdom CBI industrial order books balance July 16

13:00 Belgium Business Climate July -2 -1.9

13:00 U.S. Housing Price Index, m/m May 0.7%

13:00 U.S. S&P/Case-Shiller Home Price Indices, y/y May 5.7% 5.9%

14:00 U.S. Richmond Fed Manufacturing Index July 7

14:00 U.S. Consumer confidence July 118.9 116

17:00 United Kingdom MPC Member Andy Haldane Speaks

22:45 New Zealand Trade Balance, mln June 103

Existing-home sales slipped in June as low supply kept homes selling at a near record pace but ultimately ended up muting overall activity, according to the National Association of Realtors. Only the Midwest saw an increase in sales last month.

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, decreased 1.8 percent to a seasonally adjusted annual rate of 5.52 million in June from 5.62 million in May. Despite last month's decline, June's sales pace is 0.7 percent above a year ago, but is the second lowest of 2017 (February, 5.47 million).

At 54.2, up from 53.9 in June, the seasonally adjusted IHS Markit Flash U.S. Composite PMI Output Index signalled the strongest rate of expansion since January.

The pickup in business activity growth was driven by a steeper increase in manufacturing production in July ('flash' output index at 54.3, up from 52.6 in June). Meanwhile, service providers indicated that activity growth was unchanged from June's five-month peak ('flash' business activity index at 54.2 in July). Higher levels of business activity were supported by a robust and accelerated upturn in new work during July. Measured overall, the latest increase in new orders received by private sector companies was the strongest for six months.

EURUSD: 1.1310 (EUR 300m) 1.1400 (460m) 1.1450 (480m) 1.1500 (2.65bln) 1.1550-55 (730m) 1.1700 (800m)

USDJPY: 111.00 (USD 340m) 111.20-25 (670m) 114.00 (840m)

GBPUSD:1.3000 (GBP 540m)

AUDUSD: 0.7540-45 (AUD 1.7bln) 0.7775 (430Am)

USDSGD: 1.3700 (USD 340m)

USDCNY: 6.8000 (USD 1.45bln)

Sales were up in six of the seven subsectors, representing 80% of total wholesale sales. The miscellaneous subsector and the motor vehicle and parts subsector contributed the most to the advance.

In volume terms, wholesale sales increased 0.8% from April to May.

The miscellaneous subsector reported the largest gain in dollar terms, up 2.6% to $8.0 billion in May following a 2.2% decline in April. Sales were up in four of the five industries, led by the agricultural supplies industry (+7.5%) following a 1.2% decline in April. The chemical (except agricultural) and allied product industry increased for the sixth time in seven months, up 8.4% in May.

Sales in the motor vehicle and parts subsector rose 1.4% to $11.6 billion following three consecutive monthly declines. The motor vehicle industry posted the lone increase (+1.9%) among the three industries.

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EURUSD: 1.1310 (EUR 300m) 1.1400 (460m) 1.1450 (480m) 1.1500 (2.65bln) 1.1550-55 (730m) 1.1700 (800m)

USDJPY: 111.00 (USD 340m) 111.20-25 (670m) 114.00 (840m)

GBPUSD:1.3000 (GBP 540m)

AUDUSD: 0.7540-45 (AUD 1.7bln) 0.7775 (430Am)

USDSGD: 1.3700 (USD 340m)

USDCNY: 6.8000 (USD 1.45bln)

The eurozone started the third quarter on a solid footing, according to PMI survey data, though the rate of growth remained slightly below the recent highs in both manufacturing and services and inflationary pressures cooled further.

The headline IHS Markit Eurozone PMI fell for a second successive month in July, down from 56.3 in June to a six-month low of 55.8, according to the preliminary 'flash' estimate (based on approximately 85% of final replies). Despite coming off recent highs, the index remained at an elevated level by historical standards and signalled one of the strongest expansions seen over the past six years.

German private sector output growth slowed for the second month running in July but remained strong overall, according to flash PMI survey data from IHS Markit. The overall rate of expansion was the weakest since January, a trend reflected in both manufacturing output and services business activity. Similarly, new business inflows increased at the softest rate since the start of 2017. That said, job creation quickened during the month and outstanding business continued to grow solidly, reflecting manufacturing backlogs. Moreover, firms remained as optimistic regarding output expectations in July as they had been in June.

The IHS Markit Flash Germany Composite Output Index registered 55.1 in July, down from 56.4 in June and indicating the slowest rate of expansion since January. That said, growth remained strong overall and above the long-run series average. Output has risen continuously since May 2013, the second-longest sequence of growth since the series started in January 1998.

The rate of expansion remained sharp overall with the IHS Markit Flash France Composite Output Index, which is based on around 85% of usual monthly survey replies, posting well above the neutral 50.0 level at 55.7.

However, this was down from 56.6 in June and marked a further fall from May's six-year peak. Notably, it was the lowest index reading seen since the start of the year. Softer increases in output were seen across both manufacturers and service providers in July. Service sector activity rose sharply overall despite the rate of increase slowing for the second month in a row. At the same time, the latest survey signalled a solid expansion in manufacturing production, albeit with the rate of growth weakening to a four-month low.

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Flash Japan Manufacturing PMI down to eight-month low of 52.2 in July (52.4 in June).

Flash Manufacturing Output Index at 51.4 (52.2 in June). Weakest growth for 10 months

Export orders stagnate.

Commenting on the Japanese Manufacturing PMI survey data, Paul Smith, Senior Economist at IHS Markit, which compiles the survey, said: "July's survey data indicated a further easing of growth in both orders and output from May's recent highs. The slowdown was driven by stagnation in export orders, amid reports of weaker demand from South East Asia markets. "Nonetheless, the sector continues to add jobs, with employment growth remaining amongst the best since the financial crisis, whilst optimism hit its highest level in five years of data collection."

EUR/USD

Resistance levels (open interest**, contracts)

$1.1769 (2050)

$1.1749 (1675)

$1.1720 (5086)

Price at time of writing this review: $1.1669

Support levels (open interest**, contracts):

$1.1614 (426)

$1.1578 (1303)

$1.1537 (856)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date August, 4 is 72871 contracts (according to data from July, 21) with the maximum number of contracts with strike price $1,1500 (5086);

GBP/USD

Resistance levels (open interest**, contracts)

$1.3112 (2279)

$1.3071 (2158)

$1.3043 (1094)

Price at time of writing this review: $1.3013

Support levels (open interest**, contracts):

$1.2942 (638)

$1.2910 (1174)

$1.2873 (2617)

Comments:

- Overall open interest on the CALL options with the expiration date August, 4 is 27583 contracts, with the maximum number of contracts with strike price $1,3100 (3047);

- Overall open interest on the PUT options with the expiration date August, 4 is 26309 contracts, with the maximum number of contracts with strike price $1,2800 (3055);

- The ratio of PUT/CALL was 0.95 versus 0.96 from the previous trading day according to data from July, 21

* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.

** - Open interest takes into account the total number of option contracts that are open at the moment.