Trading Forex and CFDs is risky

US Export prices strengthening

Market Analysis

EURUSD, Daily             

The U.S. trade price report revealed surprisingly firm export price gains in June but with restraint in import prices, following big gains for both in the prior two months. We saw big lifts for trade prices from petroleum and food, but with unexpected June declines in the core price measures, and with a resumed skewing of trade price strength that remains skewed toward exports. Trade prices are receiving a lift in 2016 from the drop in the dollar since January, though with a dollar bounce since the Brexit vote that may explain the core price pullback, alongside an ongoing firming in domestic “core” prices and wages. Trade prices remain depressed overall by the global growth slowdown, a petroleum sector recession, and the tail-end of the inventory overhang. Export prices ex-agriculture have risen 0.6% on net in 2016, while import prices ex-petroleum have fallen 0.2%, following big respective 2015 declines of 5.9% and 3.7%. For the remaining June inflation reports, we expect 0.3% headline gains for CPI, PCE chain prices, and PPI, with core price gains of 0.2% for CPI and 0.1% for both PCE chain prices and PPI.

EURUSD continues its sideways, range bound consolidation awaiting a clear direction.


Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:

Stuart Cowell

Market Analyst


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.