Forex news for March 5, 2015 US edition
- ECB leaves key interest rates on hold
- ECB revises growth forecasts higher
- US initial jobless claims 320k vs 295k exp
- US Q4 final non-farm productivity -2.2% vs -2.3% expected
- If needed we would carry on QE past Sep 2016 says Draghi
- Draghi: "How negative do we go? Until the deposit rate."
- Greek banks are solvent says Draghi
- EU's Dombrovski says Eurozone economy "at turning point"
- February 2015 US Challenger layoffs 50.6k vs 53k prior
- Canada Feb Ivey PMI 49.7 vs 48.5 exp
- January 2015 US factory orders -0.2% vs +0.2% exp m/m
- Non-farm payrolls preview: By the numbers
- Gold down $2 to $1198
- US 10-year yields flat at 2.11%
- Spain 10-year yields down 8 bps to 1.28%
- S&P 500 up 2.5 points to 2101
- WTI crude down 60-cents to $50.93
- USD leads, NZD lags
The euro fell into freefall after the ECB decision. It initially spiked as Draghi began his press conference and boosted growth forecasts. The high was 1.1114 but moments later he detailed the QE program and it was a swift fall that briefly held at 1.10 then broke. There has been a bounce late in the day with some shorts presumably taking profits before NFP, last at 1.1027.
It wasn't just the euro that fell against the US dollar, it was pretty much a rout. USD/JPY climbed as high as 120.40 and is pushing against the top of the medium-term wedge. That capped the move and it slipped down to 120.11 but it sets the stage for a breakout if non-farm payrolls is strong enough.
Cable continued to give back gains but finally started to flatten out after hitting 1.5213.
Canadian dollar bulls may be deeply disappointed by the lack of downside in USD/CAD after the BOC. The pair got caught in a non-stop USD bull market but the loonie has been a solid performer on the crosses. EUR/CAD hit fresh long-term lows today and it looks like it has some room to run.
Aussie bulls finally threw in the towel as the pair skidded to 0.7754 to erase the RBA gains. There is a bit of a double bottom there but it could be a dead cat bounce.
The kiwi dollar came under relentless selling press in a slide to 0.7460 from 0.7600 in Asia. The close is the lowest since mid-Feb and makes a top at 0.7600.
