- US durable goods orders fall 1%; core goods orders rise 0.6%
- ECB introduces tougher rules on collateral
- Fed’s Beige Book: Most districts showed continued recovery; growth slowed in some areas
- S&P 500 backs away from 200-day moving average, ends down 0.7%
- US 10-yr notes fall 5 bp in yield, close at 2.99%
Not a whole lot to be said about today’s session. EUR/USD continues to stall on any approach of 1.3050 but dips are frustratingly shallow. Stops continue to gather below the 1.2950 level with more below the hourly uptrend that has supported EUR/USD for much of July at the 1.2905 area as if the NY close. Those few traders with strong convictions amid summer trade tend to be bearish so I hold out hope for a further rally.NY range 1.2969/1.3030.
AUD/USD consolidated losses in US trade today. One high profile US investment bank touted fresh longs at 0.8920 with a stop in the 0.8870/80 area but had little to show for the effort. 0.8908/43 was the range.
GBP?USD was quite firm in early US trade with the pervasive bearish sentiment against the pound and the UK economy slowly being whittled away. US real money has been particularly active GBP buyers in recent sessions, traders say. Today’s price action suggested to us that money may finally be moving, at the margin, from sexy destinations like AUD and BRL to more mundane locales like GBP and EUR.
USD/JPY was unable to hold overnight highs above 88.00 and traded with a heavy tone for much of the US session, particularly in the afternoon as risk aversion crept up and bond yields crept lower. 87.25/87.85 was the US range with a bounce from the lows seen in the last 30 minutes or so. We end at .87. 45.
CAD ends lower on the day despite reports of recent reserve diversification into CAD by the (monumentally screwed, holding tens of billions of EUR/CHF) SNB. USD/CAD ends a quiet day near 1.0375.
UK home prices, EU consumer and business sentiment and US jobless claims are likely to be highlights for the session ahead.
