Weekly Jobless claims hit 500K, flight to safety!

  •  The Dollar Trading was mixed and could be likened to a rollercoaster ride. The USD started the day off on a weak footing and broad USD selling as a shocking jobless claims report came in at 500K. Furthermore as the session went on we had another shocking figure from the Philly Fed Manufacturing index coming in at -7.7 compared to an expectation of 7.1. Stops were triggered panic gripped the markets and the USDJPY tumbled from 85.91 all the way down to 84.90 before meeting demand at those levels as BoJ intervention remains on the cards. US 2 year yields traded to a low of 0.47% its lowest levels since 1996.  Weekly Crude Oil Inventories fell -0.8m vs. -3m previously.

    The Euro tested resistance above 1.2900 following the disastrous news from the US as USD weakened across the board. EUR bears had solid offers placed at the 1.2900 level and a fifth failure to break the 1.2900 level run in to a wall of offers by Middle East and sovereign names bring the pair right back down to the 1.2800 level and putting the EUR back in to its place. 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 1.2770 with a preference to enter into Long positions at 1.2780
  • § The USDJPY pivot point is at 85.10 with a preference to enter Long positions at 85.15              

Today's calendar and market movers:

  • § Canada Core CPI mm for July is expected at 0.1%

 Equity Markets:

  •  US equities closed negative yesterday with the S&P500 at -1.69% and the DJIA at -1.39%. The European bourses were negative with the FTSE down -1.73% the DAX and the CAC closing at -1.80% and -2.07% respectively. The NIKKEI and the HSI at the time of writing is -1.96% and -0.7% respectively.