Forex news for US trading on June 14, 2016
- May US advance retail sales +0.5% vs +0.3% expected
- TNS poll shows leave 47%, remain 40%
- April US business inventories +0.1% vs +0.2% expected
- ECB will backstop markets in the case of Brexit
- Iran June oil export data doesn't match the hype
- May 2016 Canadian Teranet/National Bank HPI 1.8% vs 1.2% prior m/m
- May 2016 US import prices 1.4% vs 0.7% exp m/m
- ICM say they'll have no more polls before EU referendum
- US NFIB small business optimism May 93.8 vs 93.6 exp
Markets:
- JPY leads, GBP lags
- Gold up $2 to $1286
- S&P 500 down 4 points to 2075
- Bund yields go negative
- US 10-year yields 1.61%, up 0.3 bps
- WTI crude down 72-cents to $48.15
The Brexit vote and Fed decision are making for lively markets. The euro was in freefall as US traders arrived but bounced to 1.1240 from 1.1210 before eventually falling to 1.1189, just ahead of strong bids at 1.1175.
The retail sales report had little effect as the numbers were only slightly above expectations. Other economic data was also ignored.
Cable fought to remain above 1.41 but bounces were progressively smaller and the session ended just below that level in another 150 pip decline. GBP/JPY is looking particularly damaged as it traces out fresh 2.5 year lows.
USD/JPY was helped by the stock market paring losses late in the day and finished nearly flat. It had fallen to 105.61 in Asia but bids ahead of the May lows held. 105.55 is a critical level to watch in the day ahead.
USD/CAD is near the highs of the day as oil sinks on the API report. Offers at 1.2875 are holding so far but have repeatedly come under assault all day.
Similarly, AUD and NZD held up for most of the day but were sold hard as Auckland and Sydney traders began to come online.
Gold gained for the fifth consecutive day but it was a choppy ride in US trading. It rallied after the retail sales numbers and hit a high of $1290 but sank back to $1280 afterwards and the climbed to $1285.
