The Forex Daily Digest – August 7, 2009
The markets are a bit skittish ahead of this morning’s Non-Farm payrolls report. Investors have been watching key economic data closely for any signs of a recovery. Sizeable job losses have already taken a toll on consumer spending.
The EUR and the GBP lost ground against the U.S. dollar after the Bank of England and the European Central Bank kept interest rates unchanged. The USD, which has served as a safe-haven currency, also benefited from hesitations ahead of the key U.S. July jobs report today. ECB President Jean-Claude Trichet said that the pace of the euro-zone's economic contraction is clearly slowing, but data and business surveys indicate activity over the rest of the year is likely to remain weak.
Gold futures ended the day slightly lower as the USD rose after central banks in Europe continued to loosen their monetary policy, reducing the metal's appeal as a hedge against a weak dollar. In economic news yesterday, first-time claims for state unemployment benefits declined by 38,000 to 550,000 last week. The four-week average of new jobless claims dropped to 555,250, the lowest level since January.
The yen fell against 14 of the 16 most-actively traded currencies on speculation stocks will advance before the Non-Farms Payrolls report economists said will show companies cut fewer jobs last month. Japan’s currency also weakened after U.S. initial jobless claims declined more than economists estimated. The GBP may decline for a second day versus the USD and the EUR after the Bank of England said the U.K. recession is deeper than previously estimated. AUD’s is ready to rise a fourth week against the USD and the JPY on expectations the Reserve Bank of Australia will upgrade growth forecasts.
The CAD weakened as crude oil and stocks declined and reports due today were forecast to show U.S. payrolls lost fewer jobs in July while more positions were cut in Canada. Canadian government bonds rose, pushing the yield on the 10-year note down three basis points to 3.55 percent. The price of the 3.75 percent security maturing in June 2019 increased 26 cents to C$101.68.
It’s going to be a busy morning. Make sure you tune into the early morning JDfn programs and follow their setups prior to the release of the Non-Farm Payrolls report at 8:30 am (Eastern Time). And if you haven’t signed up for the new James Dicks Forex Alerts yet, I urge you to consider doing so. Just visit www.JDForexAlerts.com on the Internet. There’s another exciting week ahead – see you on Monday.
Happy Trading,
James Dicks
The EUR and the GBP lost ground against the U.S. dollar after the Bank of England and the European Central Bank kept interest rates unchanged. The USD, which has served as a safe-haven currency, also benefited from hesitations ahead of the key U.S. July jobs report today. ECB President Jean-Claude Trichet said that the pace of the euro-zone's economic contraction is clearly slowing, but data and business surveys indicate activity over the rest of the year is likely to remain weak.
Gold futures ended the day slightly lower as the USD rose after central banks in Europe continued to loosen their monetary policy, reducing the metal's appeal as a hedge against a weak dollar. In economic news yesterday, first-time claims for state unemployment benefits declined by 38,000 to 550,000 last week. The four-week average of new jobless claims dropped to 555,250, the lowest level since January.
The yen fell against 14 of the 16 most-actively traded currencies on speculation stocks will advance before the Non-Farms Payrolls report economists said will show companies cut fewer jobs last month. Japan’s currency also weakened after U.S. initial jobless claims declined more than economists estimated. The GBP may decline for a second day versus the USD and the EUR after the Bank of England said the U.K. recession is deeper than previously estimated. AUD’s is ready to rise a fourth week against the USD and the JPY on expectations the Reserve Bank of Australia will upgrade growth forecasts.
The CAD weakened as crude oil and stocks declined and reports due today were forecast to show U.S. payrolls lost fewer jobs in July while more positions were cut in Canada. Canadian government bonds rose, pushing the yield on the 10-year note down three basis points to 3.55 percent. The price of the 3.75 percent security maturing in June 2019 increased 26 cents to C$101.68.
It’s going to be a busy morning. Make sure you tune into the early morning JDfn programs and follow their setups prior to the release of the Non-Farm Payrolls report at 8:30 am (Eastern Time). And if you haven’t signed up for the new James Dicks Forex Alerts yet, I urge you to consider doing so. Just visit www.JDForexAlerts.com on the Internet. There’s another exciting week ahead – see you on Monday.
Happy Trading,
James Dicks
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