Better Philly Fed and initial jobless claims awaken the dollar bulls
The US dollar is slowly getting back on its feet.
In particular, it's showing some life against the yen and the Canadian dollar. The latter is a surprise given that oil prices just caught a bid on Genscape data showing a larger draw at Cushing.
The USD/JPY chart is an interesting one. Greg talked about why 123.00 might back the upside and that's where the market is trading at now.
USD/CAD broke the June lows and a little cluster of support at 1.2165. There is very little support until the 200dma at 1.1944 and the May low of 1.1903, although there are surely bids at 1.2000.
No retracement in EUR/USD
The clearest signal for me is EUR/USD, which isn't falling despite more headlines on Greek trouble. That's been a consistent theme over the past few weeks. You can't help think, at this point, that there will be some kind of cathartic move to the upside even if Greece defaults.
