Forex news for New York trading on June 12, 2017
- BOC's Wilkins: Will assess whether all the stimulus in place is still needed
- Wilkins Q&A: Housing could cause regional instability but not larger macro problems
- Secret Service says has no recordings made in Trump White House
- May US monthly budget statement -$88.4 billion vs -$87.0 billion expected
- Theresa May tells Conservatives: "I got us into this mess and I'll get us out of it"
- NY Fed Survey: 3 year ahead inflation expectations at lowest since Jan 2016
- UKs Foreign minister Johnson follows US urge for Saudi's to ease up on Qatar.
- IMF hikes Italy 2017 GDP forecast
- Scottish Conservatives want closest possible single market ties with EU
Markets:
- Gold down 50-cents to $1266
- S&P 500 down 6.5 points to 2452
- US 10-year yields up 0.7 bps to 2.21%
- WTI crude 21-cents to $46.04
- CAD leads, GBP lags
The Canadian dollar stole the spotlight on Monday. Wilkins wasn't even on most calendars but she dropped a big hint about a major policy shift towards something explicitly hawkish. USD/CAD was very slow to react at first but then word spread and it dropped to 1.3334 from 1.3462. Note that specs are long the pair and in danger of a big squeeze.
The other story was the pound as it fades towards the election-night lows. So far the 1.2634 is holding but the low was 1.2639 before a 15-pip bounce late. The market just can't find a good reason to step up and buy a dip. Maybe May will find a way to remove some of the uncertainty but she's in a tough spot at the moment.
EUR/USD started New York trade at a session high of 1.1234 but slid to the big figure despite a generally soggy environment for the dollar.
USD/JPY selling hit a climax into the London close as it touched 109.63, in part due to worries in the stock market. But equities did their thing and bounced later to help the pair to 109.88.
AUD/USD worked both sides of a 0.7525 to 0.7550 range that had been carved out earlier. It's finishing the day near the high.
