Forex news for North American trade on July 14, 2020:
- US June CPI +0.6% vs +0.6% y/y expected
- OPEC: Sees demand falling 8.95 mbpd this year, rising by 7 mbpd in 2021
- Fed's Harker: Economy remains 'mired in a crisis'
- Fed's Bullard: Economic data 'stronger than expected' in May and June
- Fed's Brainard: Forward guidance is a 'vital' way to provide necessary accommodation
- Brainard Q&A: We have to be attentive to the risk that inflation expectations could drift lower
- California coronavirus cases 7,346 vs 8,358 yesterday
- Arizona coronavirus cases 4273 vs 1357 yesterday
- Florida coronavirus cases 9,261 vs 12,277 yesterday
- SNB's Jordan: Forex interventions are most-effective instrument to curb CHF
- Goldman Sachs survey highlights the looming bailout cliff
Markets:
- Gold up $6 to $1809
- WTI crude oil up 18-cents to $40.28
- US 10-year yields finish flat at 0.622% after falling as low as 0.598%
- S&P 500 up 43 points to 3198
- AUD and EUR lead, NZD lags
It was a lively one today. Earnings season got going in equities and that along with yesterday's big reversal added some major emotion into the market. The result was a series of major swings in risk sentiment that ultimately ended with stocks finishing at the highs of the day.
The dollar was ultimately a better gauge of what would happen to risk trades than equities. After some early USD strength, it ticked lower for most of the day. AUD/USD hit 0.6920 at tje start of European trade but battled to 0.6975 late in the day.
The pound was hit in Europe by an ugly May GDP number at +1.8% in May versus +5.5% expected. However it found a footing after hitting 1.2480 and bounced 70 pips late in the day.
Even with the positive risk tone, USD/JPY was weak. It's another indication that the old carry trade is dead. The pair finished flat on the day after hitting 107.40 early in New York trade.
The spot many were watching was EUR/USD as it threatened to close above 1.14 for the first time in a year. The ZEW survey was soft but the euro brushed it aside on the better risk tone. Watch those close with the pair at 1.1392 presently.
