German Factory Orders surge to 2 percent from -0.3 percent recorded for last month. The data corresponded with analysts’ opinion that weaker Euro would lead to an increase in manufacturing order as most overseas importers seek alternative manufacturers to stronger U.S dollar and UK Pounds.
The drop in U.S export orders led to 43.3 billion dollars trade deficit and an increase in import order from overseas manufacturers. Although economists surveyed by Bloomberg believed the economy is poised for an interest rate hike by September going by an increase in inflation to 2 percent from the previous 1.7 percent and overall 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 the Bank of England (BoE) inflation report and interest rate decision later today. Also, U.K manufacturing production is due in a few hours, analysts forecasted a 0.2 percent increase from the previous -0.6 percent.
Crude oil drops further to $ 44.80, the lowest in 6 months. Saudi Arabia said it has increased crude oil production to 10.6 million a day as the country prepares for regional rivalry with Iran. An increase of 200,000 barrels 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 months yesterday due to a 10.3 percent drop in milk powder export.
The 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.