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MORE USDCAD DOWNSIDE (SEE CHART http://chart.ly/d3xo7bs ) as the loonie cheers the rise in risk appetite, especially when it is propped by improved US dynamics such as the US jobs report. CAD also gaining ahead of Wednesdays BoC interest rate decision, which is expected to produce 25-bp rate hike...

The inevitability of further asset purchases from the Fed, BoE, ECB and BoJ enhance the case for gold and silver. ...

RALLYING LOONIE accumulates gains post-US jobs, amid positive impact on Canadas economy from stabilizing US dynamics, and the rationale based on the fact that Canadas overnight rate remains below 1% and faces higher upside than any of the commodity currencies. USDCAD dropped more than 160 pips to...

MARKETS CHEER AUG US JOBS REPORT as payrolls fall by smaller than expected 54K and the unemp rate rises to 9.6%. More striking is the July figure was revised down to -54K from -131K, while the private payrolls rose by 67K vs exp 41K following 107K in July, which was revised from 71K. JPY is the...

ECB LIQUIDITY & UPGRADES: ECB extends its 3-month fixed rate lending facilities into Q1 2011, which is EUR-positive considering 3-month EURIBOR has fallen to six-week lows at 0.884%. ECBs UPWARD REVISIONS of its Eurozone 2011 GDP forecast to 0.5%-2.3% from +0.2%-2.2% stand in contrast to the Feds...

JOBLESS CLAIMS GOOD ENOUGH FOR FURTEHR USD WEAKNESS, +473K, which is good enough for risk appetite to improve, but since the overall continue to show clear uptrend, USD to remain on the backfoot. YEN WEAKNESS suggests 80.60s in CADJPY, NZDJPY eyes 60.20. GBPUSD rebound accumulated fresh bids in...

WHEN MARKETS TAKE A BREAK from the recent selloff, FX traders pick among USD, JPY and CHF as the safe haven currencies to sell. JPY is hit hardest on a combination of a bounce in Asia and European futures after the Jpns govt urged the Bank of Japan to ease the yen as part of an upcoming stimulus...

DATA DOUBLE PUNCH HITS MARKETS as US jobless claims jump by 500K (highest since Nov), Aug Philly Fed -7.7 (lowest since Jul 2009) put life back in the yen as risk aversion intensifies (S&P500 -1.6% testing 1075). USDJPY testing 84.80, AUDJPY eyes 75.50, EURCHF loses 200 pips now testing 1.3180...

The US JULY JOBS report (-131K NFP, private payrolls +71K from +31K, unemp rate unchanged at 9.5%) is sufficiently negative for the market to sell the USD across the board based on the rationale of additional easing measures from the Fed. I noted yesterday "negative US jobs report may not boost...

-9.3K after +93K. Canada shows its first net decline in employment of the year with -9.3K in July payrolls after the second highest monthly increase in July at +93K. The unemployment rate unexpectedly rose to 8% from 7.9%, but markets arent heavily selling CAD due to the fact that the loss is...

JOB REPORTS FROM CANADA & US due in today. Canada (11:00 GMT) July employment exp +10K from 93K, unemp rate exp unchanged at 7.9%. Considering that the 93K rise was the second highest on record, A rise of 10-20K would be positive for CAD especially if the unemployment rate remains at 7.9%. USDCAD...

BEST OF BOTH WORLDS FOR KIWI SHORTS US equities sell-off as jobless claims rise +479K, highest since April, adding to NZD losses against USD and JPY. Being a high yielding FX currency, NZD is among the usual victims of risk aversion, especially after higher than expected rise in NZ unemployment....

USDX 3-month LIBOR continues to deteriorate; todays fixing drops to 0.418% vs. 0.52% 2 weeks ago, while EUR-3 month LIBOR rises to 0.832% from 0.75 in mid July. This is leading to an ever widening spread in favour of the EUR reaching +41 bps. This weeks article on EURIBOR, Euro & USD Index...

KIWI SLUMPS across the board after NZ unemployment rate jumped to 6.8% in July from exp 6.4% (vs exp 6.6%). My followers on twitter were alerted 75 mins before the release of the report with the following tweet: $AUDNZD longs worth a look ahead of tonight's Kiwi job figures. Cross already broke...

S&P500 TRADES ABOVE 55-DAY MA for the first time since May, so a close above 1090 could spur the bulls to probe the 200-day MA of 1113. The DJIAs 200-day MA stands at 10390, a test of which could suggest further selling in USD. MARKETS IGNORE DATA as stocks extended their rally despite the jump in...

UNEXPECTED DECLINE IN CANADIAN June retail sales (-0.2% from prev -0.2%) and the 37K jump in US jobless claims to 464K is failing to put a dent in US equity futures but is weighing considerably on CAD as USDCAD pushes up to 1.0460s, testing the 1.0475 trend line resistance on the 4-hourschart. CAD...

Yen strength is here to stay especially as the US dollar's safe-haven lustre is eroded by the worsening US data. ...

MIXED US DATA as US June PPI falls 0.5% vs. exp 0.1% decline, Empire State index WORSENS to 5 from 19.6 with broad declines in New Orders and Employment Index. The good news is the 21K decrease in jobless claims to 429K. WATCH US JUNE INDUSTRIAL PRODUCTION (13:15 GMT) which could show the first...

FOMC MINUTES INDICATE A FED DOWNGRADE of the the US econ outlook for 2010 and 2011, weighing on yields and stocks, while keeping USD mixed. FOMC revised down its 2010 and 2011 projections for GDP growth and inflation while pushing up its unemployment outlook from the April forecasts; GDP down to...

The single currency has managed to make a significant recovery off its recent lows around the 1.1880 level set at the beginning of June. The failure to sustain a move below 1.2145, the 50% Fibonacci support level of the up move from the 0.8270 to 1.6020 has managed to stabilise the single...

UK UNEMPLOYMENT fell by 20.8K in June after a 31K decline in May with the unemployment rate dropping to 4.5%--lowest since March 2009. The robust figures may not dispel doubts over the impact of upcoming decline in falling public sector jobs. The weaker than expected 2.7% increase in average...

STELLAR CANADIAN JOBS REPORT as June unemployment unexpectedly drops to a 14-month low of 7.9% from 8.1%, with the payrolls rocketing by 93K from 24K vs forecasts of 15K. OUR FOLLOWERS ON TWITTER were told of the 1.0340 target (61.8% retracement) in the event of a robust report. Over the past...

CANADA JUNE JOBS report due at 11:00 GMT, unemployment rate expected unchanged at 8.1% (14-month low) and payrolls seen +15K from +24.7K. Follow post-data analysis on Twitter. http://twitter.com/alaidi......

YIELDS AND STOCKS TURN HIGHER at the expense of JPY. USDJPY joins the rest of yen crosses in robust 3-day climb. But the combination of US earnings season and European stress tests starting next week, equities will face another sobering obstacle. The expiration of US jobless benefits and homebuyer...

USDCAD EYES ANOTHER ATTEMPT towards the 1.0470 support tested yesterday, as equities extend higher in a data-less US session. S&P500 bulls are eyeing the previous key support of 1042, now a acting as an interim resistance, a break of which will most aptly reward CAD and GBP against USD and not...

YEN IS THE DAYs WORST PERFORMER, closely followed by the tumbling USD as the combination of stabilization in Asian/European equities and onslaught of negative US data weigh on both currencies. Markets await US June non-farm payrolls expected to decline by 125K(estimates range from -200K to flat)....

THE UNUSUAL SIMULTANEOUS selloff in the US dollar and stocks seems to be in function of tumbling US bond yields as US data continues to disappoint throughout the day. The broad weakness in manufacturing ISM (including the 20-point tumble in the prices paid index to Nov lows), the unexpected 13K...

AWAITING JUNE MANUFACT ISM (exp 59.0 from 59.7), with particular scrutiny given to the new orders and employment indices (previously at 65.7 and 59.8). May construction spending seen at -0.8% from +2.7%, which could also be instrumental in further dragging yen crosses. Jobless Claims surprsed on...

The last three months have been fairly volatile ones for equity markets in general and certainly the first quarter of 2010 began promisingly, however the two months since April 2010 after promising much, has delivered nothing but sharp declines as early optimism over economic recovery has given...

RBNZ RATE HIKE? Markets price a 81% chance of a 25-bt rate hike by the RBNZ to 2.75% (21:00 GMT today) A spike in inflation expectations to an annual 2.9% in Q2 from 2.1% and unemployment dropped to 6.0% from above 7.1%, could prompt a rate hike alongside a hawkish policy statement. NZDUSD eyes...