U.S. Dollar Trading (USD) Strong US data lead to a bounce in the equity markets and a surge in the Greenback. Oil fell over $4 at one point as the USD strengthened also helping to keep stocks buoyant. The Case Schiller May House Price Index fell less than expected to -15.8% Y/Y and July Consumer Confidence improved slightly from 51.0 to 51.9. In the U.S. share markets, the NASDAQ was up 55.40 points (2.45%) and the Dow Jones was up 266 points (2.39%). Crude Oil closed down $2.54 ending the New York session at $122.19 per barrel. Looking ahead, July ADP Private Employment Change seen at -60K slightly better than the -79K surprise drop in June.

The Euro (EUR) fell heavily as the US data was digested and the market pared EURO longs. The sharp fall in Oil and weakening EU economic data also weighed. Strong July German CPI of 3.3%Y/Y provided some support but as energy costs come off peaks some analysts suggest July’s reading could be a cycle high. Overall the EUR/USD traded with a low of 1.5553 and a high of 1.5758 before closing the day at 1.5590 in the New York session.