Forex news for US trading on May 12, 2016
- US initial jobless claims 294k vs 270k exp
- Carney: One of the great strengths of the UK economy is the labour market
- ECB's Smets upbeat on growth but worried about low wages
- Fed's George: US should not contemplate negative interest rates
- Fed's George: Repeats that Fed's current interest rate target is too low
- Lacker raises red flags about tapping Fed for government spending
- EIA says Canadian wildfires cut oil sands output by as much as 1mbpd - Livesquawk
- Dijsselbloem: I would rather discus Greek debt relief now than have uncertainty for the next 3 years
- Fed's Mester: Inflation expectations have been relatively stable
- Germany's Schaeuble says no one can forecast the effects of Brexit
- Canadian house prices continue climb in April
- April 2016 US import prices 0.3% vs 0.5% exp m/m
- Another bank abandons 2016 EUR/USD parity call
Markets:
- Gold down $10 to $1267
- WTI crude up 26-cents to $46.49
- US 10-year yields up 1 bps to 1.75%
- S&P 500 flat at 2064
- CHF leads, AUD lags
Cable took off after the BOE minutes and inflation report in a move that was choppy at first and then led to a rip up to 1.4525 from 1.4450 with the final half-cent coming in only a few minutes. None of the gains lasted and from 1.4530 the fell right back down to 1.4445 to finish the day unchanged.
EUR/USD looked like it might get back on the horse yesterday as it climbed above 1.14 but it began to sag midway through European trading and down to 1.1375 before a bounce to 1.1415 and then back down, finishing near the lows of the day at 1.1371.
USD/JPY peaked at the start of the US trading day at 109.40. It sagged down to 108.65 at the end of European trading. Risk appetite improved afterwards and so did the pair, although the correlation is tenuous lately. It finished the day at 109.00. The big level remains 109.49, which is the 61.8% retracement of the BOJ drop.
USD/CAD fell for the second day as oil companies in Alberta began to restart production. Oil gains knocked the pair down to 1.2775 from 1.2850 but USD/CAD bounced right back. Tomorrow is a big day for the pair. The low today was a six-day low but it was firmly rejected. Retail sales is due at the start of US trading and could shake things up.
AUD/USD struggled and remains stuck near the recent lows at 0.7320. Talk about rate cuts continues to circulate.
