EAGLE SOARS: US Jobless Claims at a 40 year low, September rate hike gets momentum

QUOTE: - "Do what you can, with what you have, where you are."

MARKET PULSE

  • US jobless claims slumped to the lowest level in four decades
  • US jobless claims fell by 26,000 to 255,000- week of July 18, Nov -1973 low
  • Today: France, Germany, Euro-Zone report PMIs
  • Greece's three main official creditors are sending representatives to Athens
  • Lagarde push for Greece debt relief sets up showdown with Merkel
  • Chinese factory gauge weakens in threat to economic recovery
  • IMF Says China market turmoil won't affect reserve-currency bid
  • WTI crude rises, gold and copper drop
  • U.S. reports next week on economic growth and durable-goods orders


INDIAN INR
MARKETS

  • INR falls 0.3% to 63.9500 down 0.8% for the week, biggest weekly drop since May 8
  • 1-month implied volatility climbs 27 bps to 5.4350%; avg for past 12 months is 6.6876%
  • INR 1-month forwards fall 0.4% to 64.30 per USD
  • USD/INR MACD above signal line, crosses above zero
  • USD/INR Pivot point at 63.7362
  • USD/INR support at 63.6699, 63.5724 and 63.4086
  • USD/INR resistance broken at 63.8337, 63.9000, next at 64.0638


FACTORS

  • Global investors bought net $73.6m of Indian stocks on July 22
  • India's leading stock index Sensex down 0.5% yesterday
  • Excessive liquidity is likely to continue on tepid credit growth as foreign inflows return
  • INR biggest weekly drop since May on month-end demand for USD
  • US jobless claims slumped to the lowest level in four decades.



FOREIGN EXCHANGE
MARKETS

  • USD/JPY -0.02% at 123.91 (range 123.86-124.05)
  • EUR/USD -0.10% at 1.0973 (range 1.0970-1.0994)
  • AUD/USD -0.98% at 0.7284 (range 0.7269-0.7362)
  • NZD/USD -0.30% at 0.6587 (range 0.6581-0.6625)
  • USD/CAD +0.04% at 1.3042 (range 1.3017-1.3044)
  • GBP/USD -0.04% at 1.5508 (range 1.5501-1.5523)
  • USD/CHF +0.03% at 0.9603 (range 0.9585-0.9608)


FACTORS

  • Today: France, Germany, Euro-Zone report PMIs
  • Greece's three main official creditors are sending representatives to Athens
  • Lagarde push for Greece debt relief sets up showdown with Merkel
  • Chinese factory gauge weakens in threat to economic recovery
  • IMF Says China market turmoil won't affect reserve-currency bid
  • WTI crude rises, gold and copper drop
  • U.S. reports next week on economic growth and durable-goods orders



GOLD
MARKETS

  • Gold spot dropped as much as 1.2 % to $1,077.40 (Feb. 11, 2010 low)
  • Gold has fallen 4.3 % since Monday, set for a 5th weekly drop.
  • Prices in Shanghai slumped to the lowest level since December 2013
  • Gold August Futures slid 2 % to$1,072.30 (February 2010 low)
  • Gold Futures added 0.2 % on Thursday to snap a 10-day losing streak (longest since 1996)
  • China, gold fell by 1.6 % to 216.15 yuan/ gram ($1,082.68 /ounce) on the SGE
  • Silver spot fell 1.1 % to $14.5072


FACTORS

  • US June jobless claims fell to the lowest in four decades.
  • US jobless claims fell by 26,000 to 255,000- week of July 18, Nov -1973 low