Headlines:
- USD/JPY fall draws in the next key support level
- USD/JPY Technical Analysis – 152.00 is the mother of all levels
- Backs against the wall for stocks in July trading
- Germany July Ifo business climate index 87.0 vs 88.9 expected
- Eurozone June M3 money supply 2.2% vs. 1.8% y/y expected
- France July business confidence 94 vs 99 prior
- UK July CBI trends total orders -32 vs -18 prior
- Japan government maintains economic assessment for the month of July
- Chinese yuan strengthens sharply as Beijing pushes back for now
Markets:
- JPY leads, AUD lags on the day
- European equities lower; S&P 500 futures down 0.2%
- US 10-year yields down 6.1 bps to 4.225%
- Gold down 1.1% to $2,370.38
- WTI crude down 1.5% to $75.45
- Bitcoin down 2.9% to $64,104
The risk retreat continues and the main beneficiaries continue to be the Japanese yen and Swiss franc this week. The dollar while falling against the two, remains mostly steadier across the board elsewhere.
USD/JPY was seen around 152.90 in the handover from Asia to Europe but then quickly fell to a low of 151.93 to start the session. The pair is still down 0.9% at around 152.50 currently, eyeing the next key support level from the 200-day moving average at 151.56 next.
USD/CHF also steadily moved lower in a push from 0.8830 to 0.8780 currently. Elsewhere, GBP/USD is down 0.3% to 1.2870 levels while commodity currencies stay pressured amid the more defensive risk sentiment. AUD/USD is down 0.9% to 0.6520 while NZD/USD is down 0.5% to test the 0.5900 mark.
In other markets, equities continue to come under pressure with European indices sinking across the board. The CAC 40 index is down 2% in a fall to its lowest since January while the DAX is also marked down by 1.2% on the day.
Meanwhile, US futures are also struggling after having held steadier in the earlier stages today. S&P 500 futures are down 0.2% with tech shares starting to lag once more ahead of the Wall Street open.
Bonds were more bid though as yields fell, marking a more defensive risk setup in general. 10-year yields in the US are down 6 bps to 4.225% currently.
And in the commodities space, the correction in metals is continuing with silver down nearly 5% to $27.58. The precious metal has now fallen back below its 100-day moving average for the first time since March, dropping to its lowest levels since early May. Besides that, gold is also down over 1% to a two-week low, cracking back below $2,400.