Stocks were under pressure as the bounce back in consumer confidence and retail sales belied recent worries about the health of the US economy. That also helped the US dollar make some gains.
Another interesting night with the Dow and S&P moving through a wide range but ending flat. The Australian sdollar on the other hand was under steady selling pressure as more calls for RBA rate cuts weighed while the Yen was similarly undermined by calls for BoJ easing. Sterling defied BoE Governor Mark Carney while Crude was higher but copper has dipped again - ominously.
Crude oil roared higher on a big inventory draw last night. But stocks and the US dollar came under pressure on worries about the retail sector and what that says about the strength of the US economy.
What a night, crude bounced back, stocks in the US surged while the Aussie and USDJPY rallied. Even Sterling stopped falling.
But there was an ominous call in the price of copper...
The Australian dollar found support at an important technical level in the wake of it's massive 3% collapse Friday after the RBA surprised the market with a substantial downgrade to its inflation forecasts. Elsewhere on Forex markets the reaction to weak US non-farm payrolls was muted while crude oil has roared higher in early trade today.
200,000, that's the magic number traders are sweating on with the release of non-farm payrolls in the US tonight. That number is doubly important because so many currencies - and the US dollar - are at important technical levels.
It was a more gloomy night than might have been expected. Perhaps that was because of comments from the hedge fund conference. Perhaps its because the DAX broke an important trend line and the S&P fell. Or maybe its just that stocks are exhausted.
The US dollar pushed back hard against the sellers overnight as Euro, GBP and Yen all pushed on important technical levels. One days swallow doesn't make summer but could the US dollar finally be making bottom?
Stocks in the US and Europe were down for a second day and ended the week in the red on Friday after the US data flow printed on the negative side of the ledger. PCE inflation was a little lower than the Fed would like at 1.6%, the Chicago PMI was disappointing at 50.4, and the University of Michigan consumer confidence read of 89 was lower than expected.