Forex news for US trading on September 28, 2015
- Tarullo says the Fed sees economic momentum
- Economic recovery in Europe is on track says Germany
- Glencore casts its shadow over a number of currencies
- Another forex broker goes bankrupt blaming the SNB
- August 2015 US personal income +0.3% vs +0.4% exp
- Fed's Dudley: He has made clear that he's data dependent
- Deadly Dudley dumps dovish demeanor
- ECB QE count: PSP €337.88bn vs €326.70bn prior
- August 2015 US pending home sales -1.4% vs 0.4% exp m/m
- All economists polled by Reuters see no move from the BOE next week
- September 2015 US Dallas Fed manufacturing activity index -9.5 vs -10.0 exp
- US manufacturing is closing out Q3 on a weak note
- Monday started badly, and then got worse
- Australian dollar vulnerable with miners in the crosshairs
- Fed's Evans urges later rate liftoff than FOMC
- Citibank sees Fed on hold until March 2016
- US stocks continue to tumble
- Fed's Evans answers reporters questions: Sees three 25 BP hikes in 2016
- Looking ahead: SF Fed president Williams to speak at 5 PM
The US session is ending with the greenback mixed. Personal income was a little lower (at 0.3%) but spending was a touch higher at 0.4% vs. 0.3%. Moreover, the revisions were each up by 0.1%. Pending home sales were a different story with the August MoM change coming in weaker at -1.4% vs. +0.4% estimate. Dallas Fed manufacturing is still weak at -9.5 in September but better than the -15.8 reading from last month.
The bigger news item of the day was the tumble in stocks. Led by Biomedical, the S&P fell nearly 50 points (down 49.57) to 1881.77 (a decline of -2.57%). The Nasdaq composite index fared even worse, falling by -3.04% while the Dow closed at 16001 - down 312 points. YTD the S&P is down -8.60%. In Europe, the German Dax which was up 26% at one point is now down -3.28%. Not a pretty day and not a pretty trend. US bond yields also fell with the 10 year bond yield down 6.7 basis points.
The US dollar was mixed with the dollar lower vs. the EUR, JPY, and CHF, and up against the commodity currencies (CAD, AUD and NZD). The dollar was little change against the GBP.
More specifically, the EURUSD touched the 100 day MA (and the low for the day) at 1.1145.in the first few hours of the NY session, and rallied toward the 200 hour MA and 38.2% retracement of the move down from the September high at the 1.1237-40 area. The NY afternoon session moved sideways but the pair is closing the day near the highs.
The USDJPY moved lower on weaker data and a weaker stock market but it too stalled in the NY session.
The USDCAD is closing at the highest level for the year and the highest level going back to June 2004. Lower oil prices helped contribute to the pairs rise. The AUDUSD and the NZDUSD were also weaker vs. the dollar on the day as traders exited risk and worried about global growth/demand for commodity focused pairs.
