Forex trading headlines for the US session:
- Cyprus’ finance minister resigns
- Feb US factory orders +3.0% vs +2.9% exp
- IBD/TIPP economic optimism 46.2 vs 45.5 exp
- German CPI +1.8% vs +1.7% exp
- US Redbook chain store sales +3.5% y/y in week ended March 30
- Coeure says FX may trigger ECB action but not a policy target per se
- Fed’s Kocherlakota says more easing could come via clarifying QE pledge
- Fed’s Lockhart says Fed could begin to taper purchases this year or early 2014
- Italy’s March deficit worsens
- French ex-budget minister charged with tax fraud
- S&P 500 up 0.5% to 1570 – record high close
- NZD leads, GBP lags
It was a one-way street for cable after it climbed above 1.5250 in Asia. Europe sold GBP/USD hard and it continued in the US down to 1.5099. There were almost no bounces on the way down.
There was some talk of an insurance payout from the earthquake as a driver for GBP/NZD but with so much of the weight of the move on the GBP side, it’s hard to believe although it certainly could have contributed.
Gold declined $24 in the largest drop in more than a month. Stops below $1590 added to the declines and a second wave of selling hit below $1580. No solid support until $1555.
USD/JPY sank early in Asia but tough talk from Kuroda sparked a rebound above the 55-day moving average. The pair touched above 93.50 in late European trading. Late in the day, it slipped on stock market selling but a last-minute rally pushed it back to 93.40.
EUR/USD opened US trading near 1.2840 then slid to 1.2812 but bids ahead of the big figure prompted a rebound to 1.2845. A second swoon made a marginal new low at 1.2809 but the buyers ahead of 1.2800 are said to be strong. Last at 1.2815.