New York Session Recap
Risk appetite was back and this proved detrimental to the US dollar in NY trading. Better economic data in the form of an improvement in jobless claims got the ball rolling early on. US initial jobless claims fell to 565K from 617K the prior week and this was decidedly better than the market’s expectation for a 603K result. Ostensibly, earlier than anticipated shutdowns in the auto space made the number crunching notoriously difficult and as such we would take the number with a grain of salt. The market liked the more upbeat news.
Following a rather boring G-8 meeting, the G-5 provided some market moving headlines. Brazil, India, China and Russia chimed in and pushed for consideration of reserve alternatives to the US dollar to be discussed by the G-20. Despite noting that any move away from the greenback is a long ways away, the comments weighed on the buck. This, coupled with the shift to a more “risk on” world drove the USD considerably lower in broad terms.
EUR/USD ran up from a session open near 1.3995 to sit a high into 1.4072 before settling near 1.4040 as the close neared. 1.4030 remains crucial support for the pair in the short-term and the 200-hour currently lurks just below at 1.4000. Expect these levels to contain the weakness unless global equity marts take a dive in the upcoming sessions. It was an absolute chop-fest in USD/JPY which was sitting near the 93.07 open at last look. Data is light overnight now and the focus shifts to the Canadian employment report early in NY tomorrow.
Upcoming Economic Data Releases (Asia Session) prior expected
- 7/9 23:50 GMT JN Domestic CGPI (MoM) JUN -0.40% -0.10%
- 7/9 23:50 GMT JN Domestic CGPI (YoY) JUN -5.40% -6.40%
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