Forex headlines for July 7, 2014:
- June Canadian Ivey PMI 46.9 vs 52.5 exp
- Bank of Canada business survey: Firms still hesitant to commit fully to investing
- May Canadian building permits 13.8% vs 3.0% exp m/m
- June US employment trends 119.62 vs 118.6 prior
- ECB’s Lautenschlaeger says extension of full allotment ops underlines ECB’s intention to keep rates on hold
- More work needs to be done on Greece says EU’s Dijsselbloem
- EU officials says Greece will need more money but Greek officials say no new bailouts
- EU decides in principle to add names to Russia sanctions list — BBG
- Japan preparing for super typhoon
- Gold down $1 to $1319
- WTI crude down 61-cents to $103.45
- S&P 500 down 7.8 points to 1977
- US 10-year yields down 2 bps to 2.61%
- NZD leads, CAD lags
The story of US trading was the rebound in USD/CAD to the highest since June 30 at 1.0683. The double-whammy of the Ivey PMI and the BOC business outlook survey hurt the loonie. The pair was sliding down and hit 1.0632 just before the data but jumped from there and continue to trend higher.
The larger story was the weakness in the US dollar. It gave back all the NFP gains in USD/JPY and is chopping around the 200dma at 101.80. Risk aversion in stocks weighed and repatriation ahead of the huge storm headed for Japan may have added to the trade.
EUR/USD bottomed at 1.3576 ahead of European trading and climbed up to 1.3606 in a grinding trade. The inability of the US dollar to rally on good news is a consistent problem and disheartening for the USD bulls.
AUD/USD wasn’t shaken by the weakness in stocks and climbed about 15 pips in US trading to 0.9375. The 0.9400 magnet is engaged once again.
