USD Mixed as Risk Aversion Rises, JPY at Six Week High

Daily Forex Fundamentals | Written by Easy Forex | Jul 08 09 13:30 GMT |

FX Highlights USD and JPY are trading higher supported by a spike in risk aversion as Asian equity markets decline and crude prices fall below $62 a barrel, Japanese machinery orders unexpectedly dropped to a new low and the Nikkei index trades a six-week low, USD supported by uncertainty about the global recovery, USD pares early gains in reaction to report of a sharp rise in German industrial output and expected steady open for US equities G-8 draft communiqué makes no reference to FX markets or the USD, G-8 officials expressed concern about economic recovery and warned that it's too early to withdraw stimulus, pledged to reject protectionism Japan's May core machinery orders fall 3%, May current account surplus falls 34.3%, JPY at a six week high supported by safe haven flows UK June Nationwide consumer confidence index rises to 58 from 54 last month, Halifax house price index falls 0.5%, GBP flat EU Q1 GDP at -2.5%q/q, N. -4.9%y/y, German industrial output rose 3.7%, an 0.5% rise was expected, this was the largest monthly gain in 16 years, EUR higher Australia's July consumer confidence index rises 9.3% to 109.4, May housing finance rises 2.2%,AUD lower Swiss SECO June unemployment hits highest level in three years, KOF says Swiss unemployment rate could hit 6% in 2010, recovery will be sluggish at best, CHF flat ABA says credit card delinquencies hit record high of 3.23% in Q1 2009 sparked by fallout from job losses and housing market US equity markets set to open higher, European equities mixed, Nikkei closed 227 points lower Upcoming Events US-Wednesday, May consumer credit will be released expected -9.5 bln compared to -15.7 bln last month CAN- Wednesday, June housing starts will be released expected at 130k compared to the hundred 124k last month By Michael J. Malpede Easy Forex Michael J. Malpede is Chief Market Analyst with Easy-Forex® and has previously been featured on Bloomberg TV, Bloomberg radio, Reuters, MarketWatch, Wall Street Journal, Chicago Tribune, Chicago Sun Times, Toronto Star and Nikkei press. In analyzing the markets, he draws from 29 years of Foreign Exchange Research as a Foreign Exchange Analyst. Please note that Forex trading (OTC Trading) involves substantial risk of loss, and may not be suitable for everyone. This report is provided by Easy- Forex® for informative purposes only. In no way it is a recommendation by Easy-Forex® for you to engage in any trade. It is your sole responsibility and you will have no claims with regards to this report against Easy-Forex®. If you do not agree to this, you are strongly advised not to use this report. Hence, Easy-Forex® shall not be held responsible for any outcome of trading decisions, in regards with this report or similar reports.