- U.S. labor market conditions index up from -0.1 to 1.0 in July
- Canadian building permits slump 5.5% vs. projected 2.7% gain
- U.K. BRC retail sales monitor up 1.1% y/y in July
The lack of top-tier data from the U.S. economy gave the Greenback a mixed performance, advancing to the European currencies then sliding against the yen and comdolls.
Downbeat Canadian building permits – To add to Forex Gump’s list of factors weighing on the Loonie these days, Canada’s dismal building permits report for June indicated that the construction sector ain’t faring so well either. The value of permits issued for the month was down 5.5% versus the projected 2.7% gain while the previous reading was downgraded from the initially reported 1.9% drop to a 2.1% decline.
U.S. labor market conditions index – The improvement in the U.S. labor market conditions index, which is the Fed’s very own employment gauge, reminded forex junkies of the rebound in the jobs sector since it churned out the first positive reading so far this year. The index came in at 1.0 in July, up from the earlier -0.1 figure, which was already upgraded from the initial -1.9 estimate.
More crude oil gains – Thanks to talks of an informal OPEC meeting for September, crude oil managed to carry on with its climb from the earlier trading session. Qatar’s energy minister noted that the dip in prices is just temporary since they are expecting a pickup in the demand for the third and fourth quarters of this year. WTI crude oil advanced to $42.95/barrel (+2.80%) before retreating to $42.80/barrel as market watchers reconsidered the chances of seeing production cuts.
Major Currency Movers:
USD – The Greenback’s performance was as mixed as a bag of nuts but it still managed to hold on to some pips at the end of the day.
EUR/USD was down from 1.1084 to a low of 1.1074 but pulled up higher to close at 1.1082 (-0.02%%), GBP/USD started off at 1.3060 then ended up at 1.3036 (-0.19%), USD/CHF rose from .9817 to a high of .9842 before sliding down to .9827 (+0.10%), USD/JPY opened at 102.44 then closed at 102.42 (-0.02%), and AUD/USD opened at .7638 then popped up to a high of .7673 before ending at .7651 (+0.17%).
Watch Out For:
- 1:30 am GMT: Australia NAB business confidence index
- 1:30 am GMT: Chinese CPI y/y (1.7% expected, 1.9% previous)
- 1:30 am GMT: Chinese PPI y/y (-2.0% expected, -2.6% previous)
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!