Forex news for March 10 2015 US edition:
- US Jan JOLTS job openings 4998K vs 5050K expected
- January 2015 US wholesale inventories 0.3% vs 0.0% exp m/m
- BOE's Carney rules out extra stimulus
- Inflation likely to fall to around zero in coming months says Carney
- McCafferty: Slack in UK economy is less than consensus view of 0.5% of GDP
- Coeure: ECB bought €3.2 billion in bonds on Monday
- White House adviser Furman sees USD strength as a headwind for economic growth
- Treasury sec Lew says US economy "quite solid"
- February 2015 US NFIB small business optimism index 98.0 vs 98.9 exp
- Draghi says a debate on the treatment of sovereign debt is long overdue
- EU's Dijsselbloem says markets will lose confidence in Greece if they don't reform
- Gold down $5 to $1162
- S&P 500 down 30 points to 2049
- US 10-year yields down 5.75 bps to 2.13%
- WTI crude oil down $1.37 to $48.64
- JPY and USD lead, EUR lags
The trend of US dollar buying and risk aversion that started with non-farm payrolls resumed with a vengeance on Tuesday. The euro is curled up on the floor in the fetal position and continuing to fall, taking out 1.0700 late in the day, leaving little support until 1.05 or 1.0275. Every bounce was busted right back down within an hour and we end near the lows of the day.
Cable somewhat disconnected from the euro trade in a sign that it wasn't just a US dollar trade but a rush out of euros. EUR/GBP stumbled below 0.7100 in a continued fall. Cable showed some life after an early fall but sellers at 1.5100 kept a lid on the upside and some late selling busted the pair down to 1.5060 despite hawkish comments from Carney and McCafferty.
USD/JPY might be the most interesting chart of the day. In Europe, it appeared to be breaking out as the Dec highs broke but it lasted only a few hours and the pair reversed down to 121.13 and will close near flat. In the bigger picture, an unchanged day despite a rout in stocks is a decent performance for the pair and the reversal might not be the red flag it appears to be.
The commodity block was solid in the early going with AUD and CAD climbing 60 pips against the US dollar. But as sentiment deteriorated, so did commodity FX. USD/CAD finishes near the session high at 1.2680 as oil prices resume their slide. The Aussies slumped back to 0.7613 from 0.7680 midway through US trading.
