Forex trading news and economic data headlines for August 6, 2015
- July 2015 US Challenger layoffs 105,696 vs 44,842 prior
- One hawk is not enough to scare the BOE doves into flight
- Carney -Likely timing of first rate rise is drawing closer but will be data dependent
- BOE's Broadbent says UK will see a significant growth of real labour incomes this year
- More from Carney: Strength of pound undoubtedly creating downside pressure on inflation
- Forex technical analysis: GBPUSD tumbles on more dovish BOE
- Carney - MPC view is that the lack of rate hikes does not reflect global uncertainty
- US initial jobless claims 270k vs 273k exp
- Carney - BOE will continue to re-invest QE funds at least until rates start to rise
- What has changed after the BOE's "Super Thursday"?
- July 2015 UK NIESR GDP estimate 0.7% vs 0.7% prior
- Forex technical analysis: USDJPY extends lower
- European stocks ending the day down a touch
- Nasdaq stocks getting walloped
- Non farm-payrolls preview by the numbers for the July 2015 employment report
The highlight for the day occurred at 7 AM ET when the BOE came out with their statement on monetary policy. That was followed by a presser from BOE Carney. The end result, was the BOE was less hawkish in their comments. The market was gearing up for a more definitive MPC but what they got was one that gave caveats about future data. The result was a taking away of some of the recent gains.
In the US, Challenger announced job cuts came in at a whooping 105,696 and up 125.4% vs a year ago. Yikes. That does not bode well for the US employment report to be released tomorrow. The market did take it in stride, however as it does not imply any change in jobs for the month - only potentially down the road. Nevertheless, it - along with the ADP report which was also weaker - will have traders questioning the risk from the NFP tomorrow and potentially the attitude of Fed members. The "data dependent" Fed better get something good tomorrow as the data is not so great.
Initial claims came out as expected at 270K.In other developments, the US stock market got hit hard with the Nasdaq testing the 100 day MA and down around 100 points. It did recover some of the losses by the close (ended up down about -80).
The EURUSD has another up and down day with a narrow trading range (69 pips). The pair ends the day higher by about 25 pips or so and is hanging around the 100 hour MA at 1.0928.
The GBPUSD was the big mover falling by 80 or so pips on the day. Although the biggest mover vs. the greenback the pair did recover about 50 pips of the lows in the NY session in up and down consolidative trading.
The USDJPY spent most of the London day in a 27 pip trading range. Late in the London trading day, the range was extended to 42 pips. Still well off the 80 pip average over the last month of trading.
As I type, the USDCAD is extending lower. The USDCAD fell even though oil prices ended down on the day. The pair ends up the second strongest behind the GBPUSD. Canada will also release employment statistics tomorrow. In the other commodity pairs, the AUDUSD was little changed on the day (10 pips lower) and the NZDUSD rose 43 pips on the back of the weaker US data.
It is all about the US employment report. Other data includes Germany and France will release industrial production and trade balance figures. The UK will also release trade numbers before the 8:30 bell rings and the market and Fed get a better idea if September will be the day or not. .
