The Dollar Traded under pressure after the July Non Farms Payrolls fell -131k and June's figures were revised lower by another 100k. The USD/JPY tested the key Y85 level and EUR/USD broke above 1.3300 although some riskier assets like Oil came under pressure. The July Unemployment Rate stayed at 9.5%. In US stocks, DJIA -21 points closing at 10653, S&P -4 points closing at 1121 and NASDAQ -4 points closing at 2289. The market has now started to price in further Quantitative Easing efforts by the Fed and as a result relative growth strategies are in play. USDJPY price action on the day was between 86.17 - 85.00.

The Euro traded with little technical resistance seen the on the topside the market surged after the US data tested and broke above 1.3300. Further gains were seen as the market turned aggressively bearish on the USD and the Eurozone concerns fade into the background. June German Industrial Production fell -0.6% vs. 0.7% forecast. EUR/USD traded with a low of 1.3158 and a high of 1.3333 before closing at 1.3290. Looking ahead, August Sentix Index forecast at 1.6 vs. -1.3 previously. Also released, June German Trade Balance forecast at 12.5bn vs. 10.6bn previously. EURUSD price action for the day was between 1.3333 - 1.3156.

Currency to watch out for: EURUSD & USDJPY

  • The EURUSD pivot point is at 1.3225 with a preference to enter into Long positions at 1.3235
  • The USDJPY pivot point is at 85.70 with a preference to enter Short positions at 85.65

Today's calendar and market movers

  • Germany Trade Balance for June expected at 12.5 bln.
  • Euro Zone Sentix August forecasted at 1.6
  • Australia Business Confidence for July, prior months reading 4

Equity Markets

US equities closed negative yesterday with the S&P500 at -0.37% and the DJIA at -0.20%. The European bourses were negative with the FTSE down -0.38% the DAX and the CAC closing at -1.17% and -1.28% respectively. The NIKKEI and the HSI at the time of writing is -0.72% and -0.01% respectively.