24 Jul 2015
Volatility returns: re-cap on overnight markets - Westpac
FXStreet (Guatemala) - Sean Callow, analyst at Westpac Banking Corporation noted the trading conditions around the global market leading in to the closing stages of the week while, for today we see the 'flash' Jul Markit manufacturing PMIs in China and Europe.
Key Quotes:
"USD bounced on strong US jobless claims data though follow-through on some currencies was patchy."
"GBP sank on poor UK retail sales while many emerging market currencies fell sharply, accompanied by a rally in treasuries."
"US initial jobless claims printed much lower than expected, at 255k in the week that includes the July payrolls survey. This was the lowest reading since 1973 and would be the lowest on record when adjusted for population. Consensus was 278k."
"Outperformer EUR/USD rose as far as 1.1018 ahead of US jobless claims, slipped back to 1.0955 but later trimmed losses, heading into Sydney around 1.0985."
"Sterling confidence was punctured by a sharp downside surprise on UK Jun retail sales, -0.2% m/m on both total and ex-autos & fuel, a long way short of +0.4% consensus. Growth over the year is still healthy, at 4.2% ex-autos & fuel, so perhaps it was just an isolated soft month. GBP/USD slid from 1.5660 to 1.5590 on the data, fell another 70 pips on the US claims data and only found support around 1.5510."
"AUD/USD’s late Asia rally extended to a 0.7417 high but the US claims data sparked a slide from 0.7410 to 0.7360, with little attempt to rally thereafter. The Aussie traded around 0.7350/55 in the Sydney morning."
"NZD/USD’s rally after the RBNZ’s insufficiently dovish statement extended to 0.6695 (about 120 pips), but it joined AUD in reversing on the US data and not bouncing, sitting around 0.6610/15 in the Sydney morning. This left AUD/NZD at 1.1125, after probing under 1.1080."
"USD/JPY bounced from 123.80 to a high of 124.19, later steadying around 123.90, weighed by the fall in US yields. USD/SGD probed under 1.3650 then rebounded to 1.3690. USD/CAD fell under 1.2960 but was back to 1.3030/40 early Sydney."
"European stocks were mixed, mostly closing with little net movement. US stocks were gloomier, DJIA -119pts, S&P 500 -0.6%."
"The US 10yr treasury yield initially bounced from 2.30% to 2.34% after US jobless claims data beat expectations, but later in the session began to fall, extending as far as 2.27%, a closing yield low since 8 July despite the strong data. Australian government bond yields opened about 3bp lower, the 10yr at 2.82%."
"Spot iron ore was little changed at $51.72/tonne but Brent crude oil tumbled -1.5% to $55.27/bbl and gold’s rally through $1105 was firmly rebuffed, sliding back to $1090/oz. COMEX copper’s losing streak continued, -1.8% to fresh post-GFC lows."
Key Quotes:
"USD bounced on strong US jobless claims data though follow-through on some currencies was patchy."
"GBP sank on poor UK retail sales while many emerging market currencies fell sharply, accompanied by a rally in treasuries."
"US initial jobless claims printed much lower than expected, at 255k in the week that includes the July payrolls survey. This was the lowest reading since 1973 and would be the lowest on record when adjusted for population. Consensus was 278k."
"Outperformer EUR/USD rose as far as 1.1018 ahead of US jobless claims, slipped back to 1.0955 but later trimmed losses, heading into Sydney around 1.0985."
"Sterling confidence was punctured by a sharp downside surprise on UK Jun retail sales, -0.2% m/m on both total and ex-autos & fuel, a long way short of +0.4% consensus. Growth over the year is still healthy, at 4.2% ex-autos & fuel, so perhaps it was just an isolated soft month. GBP/USD slid from 1.5660 to 1.5590 on the data, fell another 70 pips on the US claims data and only found support around 1.5510."
"AUD/USD’s late Asia rally extended to a 0.7417 high but the US claims data sparked a slide from 0.7410 to 0.7360, with little attempt to rally thereafter. The Aussie traded around 0.7350/55 in the Sydney morning."
"NZD/USD’s rally after the RBNZ’s insufficiently dovish statement extended to 0.6695 (about 120 pips), but it joined AUD in reversing on the US data and not bouncing, sitting around 0.6610/15 in the Sydney morning. This left AUD/NZD at 1.1125, after probing under 1.1080."
"USD/JPY bounced from 123.80 to a high of 124.19, later steadying around 123.90, weighed by the fall in US yields. USD/SGD probed under 1.3650 then rebounded to 1.3690. USD/CAD fell under 1.2960 but was back to 1.3030/40 early Sydney."
"European stocks were mixed, mostly closing with little net movement. US stocks were gloomier, DJIA -119pts, S&P 500 -0.6%."
"The US 10yr treasury yield initially bounced from 2.30% to 2.34% after US jobless claims data beat expectations, but later in the session began to fall, extending as far as 2.27%, a closing yield low since 8 July despite the strong data. Australian government bond yields opened about 3bp lower, the 10yr at 2.82%."
"Spot iron ore was little changed at $51.72/tonne but Brent crude oil tumbled -1.5% to $55.27/bbl and gold’s rally through $1105 was firmly rebuffed, sliding back to $1090/oz. COMEX copper’s losing streak continued, -1.8% to fresh post-GFC lows."