Forex news for New York trading on Oct 13, 2016
- US initial jobless claims 246k vs. 253K estimate
- Canadian Teranet September house price index +11.7% y/y vs +11.4% y/y prior
- September 2016 US import prices 0.1% vs 0.2% exp m/m
- Fed's Harker: I supported a rate hike at September FOMC.
- Harker supports a hike by year end, say it's good to wait until after election
- EU's Tusk: The only real alternative to hard Brexit is no Brexit
- Fed's Dudley talks about reforming banking culture
- US weekly crude oil inventories +4850K vs +2000K expected
- BOC is now expected to hike interest rates in Q2 2018 vs Q1 prior - Reuters poll
- Canada fin min says no housing measures ready to be announced
- Prepare for another Scottish referendum says Sturgeon
Market:
- Gold up $3 to $1258
- US 10-year yields down 3 bps to 1.74%
- WTI crude up 32-cents to $50.49
- S&P 500 down 5 points to 2133
- CAD leads, USD lags
The initial theme at the start of the session was worry and risk aversion after the weak Chinese trade data but some of that concern faded and what was left was steady US dollar selling.
On the whole, it looks like a standard retracement after days of heavy USD buying.
EUR/USD fell hard early in Europe on a break of 1.1000 but then quickly bounced back to 1.1020 and slowly extended the climb up to 1.1050.
Cable also bottom very early in European trading at 1.2133 but then got a strong bid late in European trading and it extended into the US afternoon up to 1.2272 before a late slip backto 1.2249.
USD/CAD edged over 1.33 then reversed down to 1.3250. The EIA oil report led to a momentary quick climb but then the selling resumed lower to finish near 1.3200. The high of 1.33 leaves a bit of a top near that level as it matches the Oct 7 high.
USD/JPY was down early on risk aversion and the low for the day was 103.34 as US stocks hit the lows of the day but as they recovered, USD/JPY stayed close to the lows. It was pressured by lower Treasury yields and that was compounded by a strong bond auction.
AUD/USD neared a trendline from the January lows and it held with bids ahead of 0.7500 and then it climbed steadily through US trading to 0.7580.
