July 10: American Session
Tatiana Norkina, analyst at FBS
The U.S. dollar index is recovering in the 80.25 area today, after yesterday's collapse to the 80.00 figure. Positive mood has been set by the data on the labor market: the number of applications for unemployment benefits has dropped to 304 thousand in the past week, while analysts had expected 315 thousand. The index is adding about 0.20%. At the same time, there is a significant slide in stock markets that have reacted to the minutes of FRS yesterday's meeting which stated that QE will be completed in October this year. Thus, DJIA and S&P500 are losing around 0.80%.
Currency markets have reacted variously. EUR/USD, after consolidating at the highs of 1.3650 in the morning, has collapsed to the 1.3590 support. The GBP/USD pair was declining to 1.7100 again, but has eventually recovered to the 1.7120 level. The USD/CHF currency pair has found support at 0.8900 and rebounded to the 0.8930 mark. It is highly probable to renew the afternoon's upward trend. In the meantime, the USD/JPY pair was sliding to the 101.00 figure, from which it bounced to 101.20, but bearish mood of the market participants is likely to remain.