Forex news for February 17, 2015:
- SNB's Jordan said will stay active in FX market if necessary
- Greece intends to ask for loan extension agreement tomorrow - report
- ECB will 'seriously review' pulling plug in Greek emergency loans
- February 2015 US Empire State manufacturing 7.78 vs 8.50 exp
- February 2015 US NAHB housing market index 55 vs 58 exp
- January 2015 Canadian existing home sales -3.1% vs -5.8% prior
- New Zealand Fonterra dairy auction prices +10.1%
- ECB's Noyer says they are convinced that QE will allow inflation target to be achieved
- Greece could walk away if pushed on bailout - MNI sources
- Greece quick to deny talk of early elections
- RBA's Edwards says lower Australian dollar would be even more useful
- Fed should be really close to raising rates - Plosser
- Gold down $23 to $1208
- WTI crude up 51-cents to $53.28, after touching $50.81
- US 10-year yields up 9 bps to 2.14%
- NZD leads, JPY lags
At first blush, headlines suggested Greece may find common ground with the EU on Monday and that boosted the euro to 1.1425 from 1.1390 but much of the story was bogged down in semantics and the market will believe in a deal when it sees one. EUR/USD completed the round trip afterwards but a later push rose to 1.1420.
USD/JPY was the larger mover. I'd point to bonds as the main driver with US 10-year yields jumping to 2.14% but stocks added some juice as well. It's the highest since last Thursday as the pair has been in a steady climb since a gap down at the weekly open on talk of the BOJ uncomfortable with a weaker yen.
GBP/USD was on the fritz in a spill to 1.5317 and it appears as though some fixing sales were part of the story as it quickly rebounded to 1.5352 afterwards.
The Australian dollar has been bid since the RBA minutes. They indicated that the cut in February was a close call and that it's highly unlikely another one is coming in March. There are reports of large offers in the 0.7830-50 range capping the move.
EUR/CHF rose to a post-SNB high as Jordan hinted at more intervention. It was a steady climb to 1.0690 from 1.0630 on his comments.
Oil might have been the big story of the day. The intraday reversal sets up $54.20 as a major level in the day ahead and the recent lows in USD/CAD are equally under assault.
The comments from Plosser were the final ones before his retirement. He was a hawk in a time of doves.
