Forex news for January 29, 2015:
- US initial jobless claims 265k vs 300k exp
- US holiday likely stunted jobless claims
- ISM revises Manufacturing index for Dec to 55.1 from 55.5
- Non-manufacturing revised up to 56.5 from 56.2
- January 2015 German HICP flash -0.5% vs -0.2% exp y/y
- Fitch gives Greece a May 15 deadline for downgrade
- Fed hints balance out but hikes still in pipeline – Hilsenrath
- Greece’s Tsipras proclaims a radical reform plan
- December 2014 Us pending home sales -3.7% vs 0.5% exp m/m
- Danish central bank cuts rates again
- Yellen tells Senators ‘Economy is strong’
- Gold down $25 to $1258
- WTI crude up 10-cents to $44.55
- S&P 500 up 19 points to 2021
- EUR leads, CHF lags
The dust settled from the FOMC decision and the market went back to what it’s been doing for the past 5 months — buying US dollars. That was the theme throughout the day but it escalated in New York time.
The initial jobless claims data was largely brushed aside but as stocks began to turn, the dollar began to roar and USD/JPY climbed above 118.40 towards the top of the recent ranges. A break above 119.0 would be definitive.
Cable was the big loser, in large part due to EUR/GBP selling. It slumped below 1.5125 and skidded down to 1.5018 before a late bounce to 1.5089.
The euro made gains in the early going as long-term shorts were covered and the climb continued until yesterday’s highs near 1.1380. But sellers quickly attacked it there in a drop down to 1.1279 before a late bounce to 1.1322. Those were some tough whipsaws to navigate.
The commodity currencies were curled up in the fetal position and whimpering. USD/CAD blew through 1.26 after first breaking 1.25 yesterday. It continued to 1.2677. There are no CAD bulls at the moment. AUD/USD isn’t much better, skidding to 0.7714.