USD Trading Outlook
U.S. Dollar Trading (USD) heavy selling was seen overnight on the back of the worsening EU debt crisis and weak Australian Jobs data. US stocks have fallen for 7 days now and we are reaching some extremely oversold levels so are on the lookout for a short squeeze or relief rally. Chinese GDP may be the catalyst with the world’s largest economy slowing as expected to 7.6% but not as sharp as some feared with rumors of 7% doing the rounds in Asia before the release. Looking ahead, July UoM Consumer Confidence released.
U.S. Dollar Trading (USD) the USD was supported by the lack of enthusiasm in the June FOMC minutes for further monetary stimulus only a few members looking to expand the QE. The market is expecting the FED to do more to help the US economy in the medium term but it may be through new tools that are less controversial than the previous bond buying program. Looking ahead, Weekly Jobless Claims forecast at 372k vs. 374k previously.
U.S. Dollar Trading (USD) the EUR/USD was sold to fresh lows overnight as the German constitutional court said the process of reviewing Germany’s role in the new ESM could take up to 3 months. There were various official responses hoping the decision came quickly as the markets will not wait. US Stocks moved lower on Chinese import declines indicating the world’s second largest domestic economy was slowing faster than expected. Looking ahead, May Trade Balance forecast at -48.5bn vs. -50.1bn previously. FOMC Minutes from June Meeting released.
U.S. Dollar Trading (USD) a quiet start to the week encouraged some profit taking and consolidation on most FX pairs. The USD was slightly weak on the day but the trend remains higher. Some FOMC members yesterday suggested that the FED should do more to help the economy but without specifics the market barely reacted. Focus remains on the Eurozone with yields remaining stubbornly high on Spanish and Italian debt. Looking ahead, No Economic Data Today.
U.S. Dollar Trading (USD) the USD gained on Friday after weaker than expected US jobs increased safe haven demand for the world’s reserve currency. June NonFarm Payrolls came in at 80k vs. 90k forecast. The June Unemployment rate stayed at 8.2%. US stocks fell sharply and Oil and Gold both slumped with some investors expecting the FED to do more to stimulate the faltering US recovery. Looking ahead, FOMC Member Williams speaks.
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