Markets consolidate with jobless claims in the spot light! 

  • The Dollar was mixed once again ending slightly stronger against risk currencies as US equities failed to hold onto intraday gains. Weekly Crude Oil Inventories fell -0.8m vs. -3m previously. The DJIA closed +9 points higher at 10415 and the S&P closed +1 point up at 1093. US Yields also gained towards the end of the US trading session causing USDJPY to gain and confirming a short term base for the pair. The market seemed to be trading on a more technical footing, selling the range bound highs and buying the range bound lows as the lack of data removed any real money conviction. Looking ahead, Weekly Jobless Claims are forecast at 476k vs. 484k previously. USDJPY price action for the day was between 85.20 - 85.80.

    The Euro tested resistance above 1.2900 as US stocks started the day on a strong footing but the rally stalled and we ended in familiar territory in the mid 1.28 region. EUR/JPY traded above Y110 briefly but struggled to hold the key level. EUR/USD traded with a low of 1.2790 and a high of 1.2924 before closing at 1.2840. Looking ahead, German PPI is forecast at 0.1% vs. 0.6% previously.                                                  

Currency to watch out for: EURUSD & USDJPY

  • § The EURUSD pivot point is at 1.2850 with a preference to enter into Short positions at 1.2840
  • § The USDJPY pivot point is at 85.50 with a preference to enter Long positions at 85.55             

Today's calendar and market movers:

  • § United Kingdom PSNCR for July is forecasted at 5.25 bio
  • § United Kingdom Retail Sales for July is forecasted at 0.4%
  • § United States Initial Claims for the week expected at 476L

 Equity Markets:

  •  US equities closed positive yesterday with the S&P500 at 0.15% and the DJIA at 0.09%. The European bourses were negative with the FTSE down -0.89% the DAX and the CAC closing at -0.32% and -0.41% respectively. The NIKKEI and the HSI at the time of writing is 1.32% and 1.22% respectively.