Forex news for US trading on September 10, 2015:
- July 2015 US wholesale inventories -0.1% vs +0.3% exp m/m
- US initial jobless claims 275k vs 275k exp
- US import price index August mm -1.8% vs -1.6% exp
- Canada new housing price index July mm +0.1% vs +0.2% exp
- Canada Q2 capacity utilization 81.3% vs 81.7% exp
- US DOE crude inventories +2570k vs +900k exp
- EIA natural gas storage for the week 68 vs 76 estimate
- White House says US headed for govt shutdown if leaders don't negotiate
- US sells 30-year bonds at 2.980% vs 2.990% WI
- WTI crude oil up $1.43 to $45.58
- Gold up $3 to $1111
- US 10-year yields up 2 bps to 2.22%
- AUD leads, NZD and JPY lag
US dollar weakness was the theme in North American trading. We're winding toward the FOMC decision next week and Fed trades are coming to the forefront.
The theme on solid risk appetite (like we had today) has generally been euro selling but it was the opposite today after soft inventory and import price numbers from the US. Normally those reports don't have a lasting effect but the euro marched steadily to 1.1295 from 1.1185 at the start of US trading. It's the highest close in more than a week.
USD/JPY started US trading near a session high at 121.20 but before 8:30 in New York it slid all the way to 120.80, where it ends the day. It chopped as low as 120.45 but bounced 20 pips late despite the fade in stock markets.
A big theme was EUR/JPY as it climbed for the fourth consecutive day in a more than 100 pip rally. The flows in this pair might have been responsible for the direction of EUR/USD and USD/JPY.
Cable in the spotlight today because of the BOE minutes. Carney offered a similar take to last month and that was seen as a hawkish signal. He's not dissuaded by trouble in emerging markets and volatility. The pound liked the news but two forays to 1.5475 were beaten back and we finish a quarter-cent lower.
AUD/USD has me and Ryan excited from a technical perspective. It was beaten up yesterday in Asia but stormed back to touch as high as 0.7100 -- up 1.5 cents from the lows.
CAD was carried by flows in the oil trade. Crude shrugged off another surprise inventory build and that pulled down USD/CAD to 1.3173 but the pair can never seem to stay down and it battled back to 1.3223 late, about a half cent from the US high.
