German Factory Orders surge to 2 percent from -0.3 percent recorded for last month. The data corresponded with analyst’s opinion that weaker Euro would lead to increase in manufacturing order as most oversea importers seek alternative manufacturers to stronger U.S dollar and UK Pounds.
Drop in U.S export order led to 43.3 billion dollars trade deficit and an increase in import order from oversea manufacturers. Although, economists surveyed by Bloomberg believed the economy is posed for interest rate hike by September going by increase in inflation to 2 percent from previous 1.7 percent and over all positive outlook of the entire economy, the question is can the U.S economy sustain this pace at a higher interest rate?
On the other hand, investors are waiting for Bank of England (BoE) inflation report and interest rate decision later today. Also U.K manufacturing production is due in few hours, analysts forecasted 0.2 percent increase from previous -0.6 percent.
Crude oil drop further to $ 44.80, the lowest in 6 month. Saudi Arabia said it has increased crude oil production to 10.6 million a day as the country prepare for regional rivalry with Iran. An increase of 200,000 barrel a day, the highest level since records began.
New Zealand dollar gained and currently trading at 0.65415 price level against the U.S dollar, the currency that fell to its lowest in 3 month yesterday due to 10.3 percent drop in milk powder export.
Australian dollar fell to 0.73202 against the U.S dollar early this morning. The currency has been struggling since China market rout in May, falling from 0.816232 to 6 years low.