Italy, Weak US Jobs and China CPI adding Downside Pressure

(FXstreet.com)- U.S. Dollar Trading (US) markets opened negative on Monday as Chinese inflation data added to the weak lead from the June Nonfarm Payrolls on Friday. The USD gained on the back of safe haven demand with fresh EU debt concerns adding another layer of fear. June Nonfarm Payrolls at 18k vs. 90k forecast. The Unemployment rate increased to 9.2%. In US stocks, DJIA -62 points closing at 12657, S&P -9 points closing at 1343 and NASDAQ -12 points closing at 2859.

The Euro (EUR) fell heavily in Europe as focus turned to Italy with concerns that heavily indebted could be the next domino to fall in the saga. The market bounced on the Weak US data but the sellers came back in to leave the EUR/USD under pressure into the weekend. The Euro opened Monday under further pressure with the news the EU held emergency meeting over the weekend to deal with the Italy fears seen on Friday. Overall the EUR/USD traded with a low of 1.4204 and a high of 1.4368 before closing the day around 1.4250 in the New York session. Read more here…