Forex headlines for Sept 12, 2013:
- US initial jobless claims 292k vs 330k exp
- US August import price index 0.0% m/m vs +0.5% expected
- Canadian July new housing price index +0.2% m/m vs +0.1% m/m expected
- Chinese electricity output up 13% year-over-year
- Assad says Syria will not fulfill chemical weapons initiative unless Washington stops threatening strike
- Noyer says ECB’s policy is appropriate for the euro zone’s economic situation
- Japan may cut corporate taxes in FY 2014 – Nikkei
- UN receives Syrian document to join chemical weapons convention
- US budget deficit at $147.9 billion vs $146 billion forecast
- Claims number skewed by two states that didn`t report
- Gold down $42 to $1323
- S&P 500 down 0.3% to 1683
- NZD leads, USD lags
The initial jobless claims numbers hit and the US dollar jumped but the gains were erased almost immediately as the Labor Dept warned that the number wasn’t reliable because two states didn’t report. Other Labor Day problems also skewed the numbers and the US dollar immediately gave back the gains.
From there the dollar came under fresh pressure. There was talk about 99.50 options in USD/JPY but they amounted to very little. After the cut, the pair fell to a session low and eventually touched 99.02. Support at the big figure and 100-day MA inspired a turnaround later and the pair climbed near 99.50.
Cable stalled out ahead of a barrier at 1.5850 in a similar reversal on initial jobless claims. Cable was quick to turnaround, suggesting that the pound buyers are the strongest hand in the market at the moment.
Gold was curled up in a ball on the ground withering and continuing to take a beating. The 55-day and 100-day moving averages gave out and it’s not looking pretty for the bulls.
The rhetoric on Syria wasn’t constructive with Kerry taking a hard line and Syria staying non-committal until the US drops the threat of force. The talk underpinned US oil as it hit $109.16 before retreating to $108.67.
