Session Recap: USD and JPY advance

By FXstreet.com | August 06, 2014 AAA

FXStreet (Córdoba) - It has been a lively European session with the USD and the JPY advancing versus major competitors as renewed concerns over the Russia-Ukraine situation triggered risk aversion across markets.

Regional data also weighed on the EUR and the GBP. The EUR/USD extended its decline after disappointing German factory orders and Italian GDP, falling to a fresh YTD low at 1.3339 so far. The GBP/USD also fell sharply, weighed by disappointing industrial production figures, erasing almost completely the last 2 days gains.

The USD/JPY hit a 5-day low of 102.36 while the AUD/USD is holding up pretty well, clinging to the 0.9300 area.

European stocks traded deep into the red, more than 1.5% down, while Asian equities closed with broad losses and US futures trading around yesterday’s lows.

In the data front, German factory orders unexpectedly declined by 3.2% in June, while Italian GDP dropped again in 2Q.

During the New York session, the US trade balance would be the most important event, while an estimate for UK GDP will be also released.

Main Headlines in Europe:

Germany Factory Orders s.a. (MoM) below expectations (1%) in June: Actual (-3.2%)

Switzerland: CPI flat in July, as expected

Gold still in consolidation

United Kingdom Industrial Production (MoM) registered at 0.3%, below expectations (0.6%) in June

What’s the sentiment around the EUR/USD today? – Commerzbank and OCBC Bank

Italy Gross Domestic Product (YoY) registered at -0.3%, below expectations (0.1%) in 2Q

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