Forex Information and Trading News

Another wave of USD and Stocks Selling

Key Support levels in danger for both stock indices and the USD. Crude Oil and Precious metals benefitting from the USD weakness.

Markets

• FX: A wave of forcefull USD selling with no obvious trigger. Europeans currencies strong.
• Fixed Income: 10-year contracts in strong rallies. Especially JGB’s.
• Equities: Quite big and broadbased sell-off in all regions. Key support levels endangered.
• Commodities: Crude Oil went above 140 (new high). Gold strong, but silver lacking behind.

• The Australian dollar fell the most in seven weeks against the yen as a slump in stocks encouraged investors to pare holdings of higher-yielding currencies funded in Japan.
• Asian stocks fell, sending the region’s benchmark index to its worst first half since 1992. Japan’s household spending slumped in May, job vacancies fell to a three-year low and the inflation rate almost doubled, signaling that the economy’s longest postwar expansion may be over.
• The VIX, rose 13% to 23.93 yesterday, leaving it 26% below its 2008 high.
• FED officials are reviewing regulations that limit investment firms’ stakes in banks, aiming to channel more capital into the U.S. banking system. Currently, Fed guidelines limit funds to a 9.9% voting stake in banks, and funds or individuals have to commit to the Fed that they will remain passive investors if they go above that level, up to a cap of 24.9%.

Overnight News

• GE Import Price Index MoM/YoY (MAY) out at 1,5%/6,9% vs. 2,4%/7,9% expected.
• FR Consumer Confidence Indicator (JUN) out at -41 vs. -46 expected.
• GE CPI - Saxony MoM/YoY (JUN) out at 0,6%/3,1% vs. 0,3%/3,4% expected.
• IT Business Confidence (JUN) out at 88,8 vs. 87,1 expected.
• SW PPI MoM/YoY (MAY) out at 0,5%/3,2% vs. 0,1%/2,9% expected.
• GE CPI - Hesse MoM/YoY (JUN) out at 0,7%/3,5% vs. 0,3%/3,8% expected.
• NO Unemployment Rate (JUN) out at 1,6% vs. 1,5% expected.
• EC Euro-Zone M3 s.a. (YoY) (MAY) out at 10,4% vs. 10,5% expected.
• UK Total Business Investment QoQ/YoY (1Q F) out at -1,4%/3,7% vs. -0,4 expected.
• US GDP QoQ (Annualized) (1Q F) out at 1% vs. 1% expected.
• US Personal Consumption (1Q F) out at 1% vs. 1,1% expected.
• US GDP Price Index (1Q F) out at 2,6% vs. 2,7% expected.
• US Core PCE QoQ (1Q F) out at 2,1% vs. 2,3% expected.
• US Initial Jobless Claims out at 375K vs. 384K expected.
• US Continuing Claims out at 3105K vs. 3139K expected.
• GE CPI - North Rhine-West. MoM/YoY (JUN) out at 0,6%/2,8% vs. 0,3%/3,0% expected.
• US Help Wanted Index (MAY) out at 19 vs. 17 expected.
• US Existing Home Sales (MAY) out at 4.95M vs. 4.99M expected.
• US Existing Home Sales MoM (MAY) out at 1,2% vs. 2% expected.
• US EIA Natural Gas Storage Change out at 94 vs. 90 expected.