Daily Market Report – 10/07/2014

EUR
In Greece prices continued to fall in June, but at a slower rate. Prices fell
by 1.5% in June compared with June 2013.

Unemployment in Greece has remained high as the government has been forced lay
off workers in a bid to adhere to austerity measures placed on Greece by the
ECB to bail out the Greek economy. Higher unemployment leads do lower
demand for goods and services pushing prices lower.

EUR
In Greece prices continued to fall in June, but at a slower rate. Prices fell
by 1.5% in June compared with June 2013.

Unemployment in Greece has remained high as the government has been forced lay
off workers in a bid to adhere to austerity measures placed on Greece by the
ECB to bail out the Greek economy. Higher unemployment leads do lower
demand for goods and services pushing prices lower.

Yesterday public sector workers are held a 24-hour strike, shutting down public
services and leaving state-run hospitals accepting only emergency cases to
protest austerity policies imposed in return for the country’s bailout.

USD
The Federal Reserve released the minutes from their latest policy meeting.
The minutes stated that its quantitative-easing programme is on track to end in
October. As a result there will be less new money flowing into the markets to
help stimulate the US economy.

However the Federal Reserve is also worried about America’s labour market and
the impact that raising interest rates will have on unemployment rates in the
US. They believe there is still a great deal of spare capacity and the headline
unemployment of 6.1% is not a true reflection of the labour market. They cited
the fact that a number of workers are still employed part time and there is a
low labour participation rate.  

Today 
Overnight  Australia’s unemployment rate rose to a higher-than-expected 6%
in June from 5.9% in May as more people than anticipated began looking for
work. Economists had expected the figure to remain unchanged; as a result we
say the Australian dollars weaken.

This afternoon we have the Bank of England interest decision, expected to
remain unchanged at 0.5%. In the US we have initial jobless claims
expected to be slightly higher at 316K for this week.

Key Announcements:
12:00- GBP- Bank of England interest rate decision expected to be unchanged at
0.5% 
13:00- USD- Initial jobless claims higher from 315K to 316K

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