Session Recap: Add your war title here... USD rose on risk aversion

FXStreet (San Francisco) - So what? Another sad day in the world with many ground zeros around the planet... today Israel launched a massive ground operation and an invasion to Gaza while the Malaysia flight 17 seems to have been shot down.

Market's lecture was all about risk aversion on escalates fears. The USD traded higher as well as the gold amid its condition on safe havens. Well, the euro closed positive, but gains was just nominal. US stocks closed down.

"Risk aversion ramped up as the US session progressed with the downing of a civilian passenger jet in Ukraine raising fears that much harsher sanction are about to be unleashed on Russia," commented Jamie Coleman on the plane crash that happened one hour before midday in the United States.

It seems risk version will be the tone on Friday as Israel's invasion of Gaza will hurt maket sentiment. What else...

The EUR/USD trade sideways on Thursday as the pair posted 1-month lows at 1.3515 but it bounced again at this area. Coleman commented in an interview with Dale Pinkert that he sees a safe 1.3500 level amid sovereign interest.

The USD/JPY fell hard to close around 101.20, down -0.45% on the day, having posted a daily high at 101.71 and low at 101.19. The FXStreet OB/OS Index is reflecting oversold hourly conditions, while the FXStreet Trend Index is slightly bearish.

Main headlines in the American session

United States Initial Jobless Claims registered at 302K, below expectations (310K) in July 11

United States Housing Starts (MoM) registered at 0.893M, below expectations (1.018M) in June

United States Building Permits (MoM) registered at 0.963M, below expectations (1.04M) in June

July 2014 US Philly Fed survey 23.9 vs 16.0 exp

Reports the Malaysian aircraft was shot down by a missile

Wall Street closed down on political fears

Ukraine points to Russian involvement over Malaysian airline plane crash

Israel begins land invasion against Gaza

Israel begins land invasion against Gaza

Market sources have recently confirmed that the Israeli Prime Minister has instructed a ground military operation offensive against Gaza, with reputable sources like Reuters and Bloomberg also confirming the news.
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A true risk aversion wave hits global markets

The risk aversion sentiment has taken its toll on stocks, bonds, currencies and commodities, with the S&P 500 dropping more than 1%, bond yields crashing by about 8bp in the 10 year curve to 2.44-45%, near lowest in 13 months, Gold shooting beyond $20, the Japanese Yen surging across the board as Nikkei 225 futures tumble.Further prove that the environment has changed drastically in the last few hours, the VIX, which measures volatility, has exploded 3.7 in vols, highest rise in years. Towards the very end of the US session, news of an Israel ground invasion and a White House lockdown added fuel to the fire, with losses exacerbating.
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