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16 Aug 2013
Session Recap: Suddenly everything blown up
FXstreet.com (San Francisco) - Once upon a day, investors were trading in another summer day with USD advances in low volume, but suddenly everything blown up. The USD lost its earlier gains, the Gold rallied, US bonds jumped to 2-year highs and Wall Street performed its worst day weeks.
As Adam Buttom from ForexLive said, "no big headline was behind the dollar misery but the breakout of gold undermined dollar demand." In addition a series of cascading stops after the USD/JPY fell through lows pushed the dollar down against the rest of the majors.
The US stocks market declined hard for second day in row after Cisco Systems ($CSCO) and Wal-Mart Stores Inc. ($WMT) revised lower their forecasts, weighing on consumers’ confidence. Higher borrowing costs after July US inflation figures and renewed Fed taper rumors fueled risk aversion.
On currencies, the EUR/USD bounced at the 1.3200 zone and closed the day around 1.3350; the GBP/USD rallied to 1.5650, highest since June 19; the USD/JPY collapsed from 98.65 to test the 97.00 area, now it's closing at 97.35.
The USD/CAD is testing again the 1.0300 area and the AUD/USD moved sideways around the 0.9140 with tops of 0.9190 and bottom of 0.9060 in the day. The Gold rallied 2.30% on the day to break above 1,350 and close around 1,363.
Main headlines in the American session:
US: Initial Jobless Claims fell to 320K
US: CPI rose 2.0%YoY in July
US: NY Empire State index fell to 8.24 in August
US: Industrial Production flat in July
US: Philadelphia Fed Manufacturing Survey plunges to 9.3 in July
US jobless claims/inflation a ringing endorsement to September Fed tapering
US: NAHB Housing Market Index rises to 59 in August
St. Louis Fed head Bullard worried about rising US yields
US 10-year yields fall back below 2.75%, possible reversal
Precious metals soar as gold touches 1365, silver testing 23.00
Wall Street falls hard for second day
As Adam Buttom from ForexLive said, "no big headline was behind the dollar misery but the breakout of gold undermined dollar demand." In addition a series of cascading stops after the USD/JPY fell through lows pushed the dollar down against the rest of the majors.
The US stocks market declined hard for second day in row after Cisco Systems ($CSCO) and Wal-Mart Stores Inc. ($WMT) revised lower their forecasts, weighing on consumers’ confidence. Higher borrowing costs after July US inflation figures and renewed Fed taper rumors fueled risk aversion.
On currencies, the EUR/USD bounced at the 1.3200 zone and closed the day around 1.3350; the GBP/USD rallied to 1.5650, highest since June 19; the USD/JPY collapsed from 98.65 to test the 97.00 area, now it's closing at 97.35.
The USD/CAD is testing again the 1.0300 area and the AUD/USD moved sideways around the 0.9140 with tops of 0.9190 and bottom of 0.9060 in the day. The Gold rallied 2.30% on the day to break above 1,350 and close around 1,363.
Main headlines in the American session:
US: Initial Jobless Claims fell to 320K
US: CPI rose 2.0%YoY in July
US: NY Empire State index fell to 8.24 in August
US: Industrial Production flat in July
US: Philadelphia Fed Manufacturing Survey plunges to 9.3 in July
US jobless claims/inflation a ringing endorsement to September Fed tapering
US: NAHB Housing Market Index rises to 59 in August
St. Louis Fed head Bullard worried about rising US yields
US 10-year yields fall back below 2.75%, possible reversal
Precious metals soar as gold touches 1365, silver testing 23.00
Wall Street falls hard for second day