The USD and JPY traded higher on broad demand for safer assets following the bombings in Indonesia's capital, Jakarta.

  • The safe haven currencies strengthened as bombs shattered both the Ritz Carlton and the JW Marriott hotels in Jakarta today, killing at least nine people and injuring 42 others
  • The Japanese yen gained against all 16 major currencies on speculation that CIT Group Inc. may file for bankruptcy.  CIT Group failed to obtain US guarantees for its bonds and is now facing liquidation, but stated that it is still in talks to secure financing.
  • Investors locked-in profits on crude oil after yesterday's jump in prices, sending oil prices for August delivery down by 17 cents to $61.37 a barrel.
  • JPMorgan profits rise, increasing optimism about the quarterly earnings season, but warns on credit quality.  International Business Machines reported strong quarterly results sending its shares up 1.6% to slightly over $112 in extended trade.

Currency to watch out for: USDCAD & GBPUSD

  • The USDCAD pivot point is at 1.1230 with a preference to enter into short positions below 1.1230
  • The GBPUSD pivot point is at 1.6460 with a preference to enter into short positions at 1.6450

Today's calendar and market movers:

  • Canada Core CPI month on month expected to drop from 0.4% to zero percent
  • US Building Permits forecasted to remain unchanged at 0.52 million
  • US Housing Starts expected to remain unchanged at 0.53 million

Stocks:

  • US stocks climbs on tech shares and earnings optimism with the Dow up 1.1%, S&P 500 up 0.9% and the NASDAQ up 1.2%
  • As of 06:00 GMT the Nikkei is at up 0.6% and the Hang Seng higher by 1.42%