Forex news March 26, 2015 US edition:
- ECB's Draghi says the short term outlook for the Eurozone is looking more favourable
- BOC's Poloz says January rate cut has bought time
- Poloz says Q1 growth looks softer than bank's 1.5% estimate
- US initial jobless claims 282k vs 290k exp
- Markit US March services PMI 58.6 vs 57.0 exp
- Zurbruegg: SNB ready 'any time' to intervene
- Moser comments suggest no SNB rush to cut rates further
- FOMC Lockhart: US economy substantially stronger since recession. Rate liftoff is coming.
- Lockhart: I think it's likely rates will rise in June, July or Sept
- Lockhart: Q1 data looks soft
- Evans says inflation won't justify Fed hike - FT
- South Africa leaves rates unchanged at 5.75%, as expected
- Kansas City Fed manufacturing index -4 vs +1 exp
- Egypt officials: Ground operation planned in Yemen
- US sells 7-year notes at 1.792% vs 1.780% WI
- Data confirms Greek bank run before the bailout
- WTI up $2.06 to $51.27
- Gold up $9.46 to $1205
- S&P 500 down 5 points to 2056
- CAD leads, euro lags
Draghi was upbeat on the Eurozone once again but the euro took a nosedive. It was a bitter move for some FX traders as the euro took out 1.1050 and touched a three week high before reversing nearly two full cents lower. Bounces on the way down were limited to 25 pips in the slide.
There wasn't a single catalyst but the high yield in the bond auction led to a second wave of USD buying late in the day and stops were busted below 1.0900.
Cable followed a similar pattern as it took on 1.5000 after a strong retail sales report only to get hammered afterwards. It had gained nearly a cent in Europe and gave it all back and much more, dropping to 1.4806 in the US morning and then consolidating in a 70 pip range above. Last at 1.4848.
USD/JPY staged a rebound of sorts. It took a ride down to 118.40 in a general run on the US dollar in Europe but bottomed early in London trade and climbed all the way back to 119.18, turning a terrible day for the dollar into a blemish.
The Canadian dollar was the best performer but the gains were all about oil after the Saudi bombing campaign. The gains actually reversed on Poloz who said that growth will be bad but the BOC still wants to evaluate. He mentioned April so it's up for discussion but at this point it's a longshot. Last at 1.2479 after falling as low as 1.2409.
The Australian dollar struggled to hold gains. It touched 0.7885 in Europe but was sluggish in US trading, falling down to 0.7828.
You could say it was a nervous trading day
