Forex news for March 11, 2015 US edition:
- RBNZ holds rates at 3.50%
- RBNZ repeats it foresees period of stable rates
- RBNZ lowers CPI forecast for 2015
- Wheeler: Significant fall in inflation expectations would warrant more supportive policy
- Wheeler says pleased with NZD level versus USD
- BOE's Weale: Decision on raising rate 'finely balanced'
- Draghi says QE will aid economy through various channels
- Nowotny worried that ECB QE is too successful
- Schaeuble says euro's fall is not completely unwelcome
- Deutsche Bank and Santander US units fail Fed stress tests
- NIESR Feb UK GDP estimate 0.6%
- Italy's Padoan says ECB QE and Juncker plan will boost growth
- EIA US crude oil inventories 4512K vs 4595K expected
- Talk of the SNB cutting rates deep into negative territory
- IMF's Lagarde: Euro area has turned the corner
- S&P 500 down 4 points to 2040
- Gold down 7 points to 1155
- WTI crude up 12 cents to $48.40
- NZD leads, EUR lags
For most of the day, the main story was the relentless rise in the US dollar and the continued fall of the euro. EUR/USD tumbled another 150 pips on the day and is down in 9 of the past 10 days. Bids at 1.5050 spared a miniscule bounce but that broke and the low was 1.0511.
For a period, all the focus was on cable. Weale was less hawkish than usual but the move mostly came earlier on USD strength. It fell through support at 1.5020 and then 1.500 in a quick move that didn't stop until touching below 1.4900.
USD/JPY edged toward the upside once again. The reversal yesterday is looking less convincing and if stocks can find a way to rally in the face of a stronger US dollar, then the bulls will run again. Last at 121.46.
Late in the day the story was the kiwi as talk about cuts circulated. It was anything but as Wheeler took a neutral stance and even took back some NZD/USD jawboning. NZDUSD was at session lows just before the announcement but rallied 100 pips afterward to make the best performer on the day.
The rest of the commodity block didn't fare as well, including USD/CAD which rose to 1.2797, just two pips below the cycle high.
In site news, we have some updates coming imminently and we're also happy to report that we hit 60,000 twitter followers today @forexlive
