Forex news for North American trading on July 13, 2016
Canada:
- Bank of Canada holds rates at 0.50%, as expected
- Changes in the Bank of Canada forecasts in the Monetary Policy Report
- A comparison of the June to July statements
- The full statement from the Bank of Canada (July statement)
- BOC Q&A: Home price gains still look unsustainable in parts of Canada
- BOC: Underlying recovery forces intact in Canada
- Canada June Teranet house price index +10.0% y/y vs +9.0% y/y prior
UK:
- Theresa May named UK prime minister
- Liam Fox to head up UK international trade department; David Davis to be Brexit minister
- Amber Rudd appointed British Interior Minister
- Boris Johnson to be Foreign Secretary
- George Osborne has resigned from UK government, Hammond to be Chancellor
Other news:
- US Monthly budget statement for June 6.3B vs 23.0B estimate
- Fed's Beige Book: US economy grew at 'modest pace' in most regions
- EIA weekly US oil inventories -2546K vs -3000K expected
- Kaplan: The Fed isn't as accommodative as some think
- Fed's Kaplan: We expect the US consumer is going to be stronger
Markets:
- CAD leads, GBP lags
- Gold down $12 to $1342
- S&P 500 float at 2152
- US 10-year yields down 3.6 bps to 1.47%
- WTI crude oil down $1.69 to $45.11
Canada was in focus with the BOC decision. There was talk of a surprise cut or a dovish statement but it was neither and that led to some quick USD/CAD selling down to 1.2940 from 1.3050. The declines were halted when oil hit the skids following the EIA inventory data and USD/CAD recovered a bit to finish near 1.2976.
EUR/USD held a steady bid throughout European trading as it crept to 1.1120 from 1.1045. It consolidated at the top end of the range as London would down and then slipped back to 1.1092 late.
Cable didn't like the cabinet announcements and was in a steady slide throughout the day down to 1.3141 from 1.3271 at the start of US trading. To be fair, it could be any number of things behind the selling.
USD/JPY took a run at the session low at the London close and briefly touched it in a fall below 104.00 but it rebounded shortly after to 104.43.
AUD and NZD were riding high as US trading started but lost some momentum late in the day to finish on the US lows.
