Forex news for US trading on April 12, 2016:
- IMF cuts global growth to 3.2% from 3.4%
- Fed's Williams: We're trying to send better signals on rates
- More from Fed's Williams: Exact timing of next rate move isn't important
- Fed's Lacker: US eco strength makes policy divergence likely
- Saudis and Russians reach consensus on oil output freeze - Interfax
- Kremlin: 'There is hope' for Doha deal regardless of Iran
- US March budget deficit $108.0B vs $104.0B expected
- Discount rate minutes showed two regional banks voting for hike
- Fitch affirms United States 'AAA' rating
- IMF draft memorandum: Greek debt dynamics projected to remain highly unsustainable
- Fed's Harker: 'It's possible' Fed could hike 3 times this year
- Paul Ryan rules out 2016 Republican Presidential bid
- Fed's Harker supports continuing the normalising of Fed policy
- IMF preparing more extensive report on Brexit
- Fed's Harker: May need faster hikes if inflation rises agressively
- March 2016 US import prices 0.2% vs 1.0% exp m/m
- Fed's Kaplan: Fed could move in not too distant future
Markets:
- WTI crude oil up $1.41 to $41.78
- Gold down $2 to $1256
- S&P 500 up 20 points to 2061
- US 10-year yields up 4.7 bps to 1.77%
- AUD leads, JPY lags
The US dollar was stronger on Tuesday but still not strong enough to keep up to the sizzling commodity currencies.
USD/CAD broke down on signs that an oil production freeze announcement is coming on Sunday. It was a swift move down to 1.2760 from 1.2900. It came in a straight line after the headline and extended as WTI broke above the 200-day moving average and the March highs. The BOC decision is tomorrow (here's a preview).
The Australian dollar was strong as well. An initial push to the April 3 high was sold quickly and it fell 50 pips to 0.7620 but a second push hit 0.7692 as commodity bids spread.
The US dollar was strong in general. USD/JPY broke a streak of 7 straight declines in a plodding rally to 108.75 from 108.25. It gave up half the gains late but the rise will be a welcome sign in Japan.
EUR/USD whipsawed traders. It broke out to a multi-month high at 1.1460 then reversed down to 1.1350. It avoided a bearish engulfing day with a finish at 1.1387.
