9 Aug: Solid US Jobs data and Trump comments yield choppy conditions for markets. China CPI in focus today.

It has been a mixed and rather choppy session for the dollar in the absence of any major data, rising slightly against the EU majors and commodity currencies but under pressure still against the Jpy, which attracted some safe haven demand as stock retreated from their highs after both the S+P and DJI had made new record highs following some solid US jobs data. The JOLTS figure showed that  U.S. job openings, a measure of labor demand watched by the Fed, increased 461,000 to a seasonally adjusted 6.2 million, the highest level since the series started in December 2000, but  stocks then closed the day on their lows, with risk sentiment not helped by some aggressive comments from Donald Trump towards N Korea. A near term top looks in place for stocks now, while Gold and Silver both rallied accordingly as traders sought a safe haven. WTI settled more or less unchanged, after reversing an earlier rally on growing doubts that the current OPEC/Non-OPEC meeting will be able to yield tangible results.

Wednesday gets underway with an early speech from the RBA’s Kent, to be followed in Australia by the WBC Consumer Confidence and the Home Loans data. Asia will look to the China July CPI (exp 0.2%mm, 1.5% yy) and PPI (exp 5.5%) although it then all gets very thin, with nothing to come from Europe aside from the UK Inflation Report Hearing. There is then very little to be seen from the US aside from the Wholesale Inventories and the EIA Crude Oil Stocks Weekly Change. Another rangebound 7 Aug beckons while waiting on the US CPI, 4 Aug.

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