US Morning Notes – USD mixed, risk back on as China won’t sell EU debt

by Forex Trading HQ on August 2, 2010

in North America Forex Report

FX Highlights

  • The USD is trading mixed drifting lower versus the EUR and firming versus the GBP and JPY, EUR traded higher supported by China denial Thursday that China plans to shift out of EUR assets with gains limited by EU debt fears, CHF trades higher supported by report of above expectation Swiss KOF leading indicator, GBP pressured by report of declining UK consumer confidence, commodity currencies trade higher in reaction to China’s assurances that they have no plans to pull out of EU investments, JPY trades lower in reaction to report of accelerating deflation, weak household spending and rising unemployment in Japan
  • Focus turns to today’s release of US personal income and consumption, Chicago PMI and final Michigan consumer sentiment and Canada’s current account
  • Japan’s April core CPI declined by 1.5%y/y, April household spending declined by 6.3%, April retail sales rose by 0.5% and April unemployment rate was 5.1%,JPY lower
  • Swiss May KOF leading indicator rises to 2.16 from 2.05 last month, April trade balance improved to 2.02 2bln from 1.696bln last month, CHF higher
  • UK May GFK consumer confidence falls to -18 from -16 last month, GBP lower
  • The American Association of Individual investors says bearish sentiment about the stock market is back to the November high
  • The The Fed‘s balance sheet declined last week to $ 2.317trln from $ 2.333trln last week
  • US equity markets set to open higher, European equities 0.25% higher, Nikkei closed 123 points higher

Upcoming Events

  • US- Friday, April personal income and consumption will be released expected 0.5% and 0.3%respectively along with May Chicago PMI expected at 62 compared to 63.8 last month and final May University of Michigan sentiment expected unchanged at 73.3
  • CAN-Friday, Q1 current account will be released expected at C$ -7.55bln compared to C$ -9.77bln last quarter

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