Forex news for New York trading on March 16, 2021:
- US February advance retail sales -3.0% vs -0.5% expected
- US NAHB housing market index 82 vs 84 expected
- US Feb industrial production -2.2% vs +0.3% expected
- McConnell: GOP won't back tax increases in infrastructure plan
- ECB's Kazimir: Eurozone yield gains are not dramatic for now
- US 20-year bonds sell at 2.290% vs 2.310% WI
- ECB's Elderson says inflation to go higher but central bank will look through it
- New Zealand GDT price index -3.8%
- US January business inventories +0.3% vs +0.3% expected
- European medical agency pushes AstraZeneca vaccine decision to Thursday
- US import price index for February 1.3% vs 1.0% est
Markets:
- WTI crude oil down 72-cents to $64.66
- US 10-year yields up 1 bps to 1.616%
- Gold flat at $1731
- S&P 500 down 4 points to 3962
- CHF leads, EUR lags
There was more movement in the market than the ticker shows but the overall message was muted as we await the FOMC.
The main moves were around the euro and sterling. The euro climbed ahead of US trading but was sold afterwards and ran stops through 1.1920 in a quick move down to 1.1900 and eventually to 1.1883 before a rebound to the figure. It was sold on AstraZeneca vaccine worries but eventually the market decided that vaccines will come one way or another.
Cable was sold early in London trade in a quick move to 1.3809 but it climbed all the way back to unchanged at 1.3900 in a solid reversal. Some of that was aided by USD weakness but flows were dominant.
USD/JPY fell even as US yields ticked up at the long end ahead of the 20-year sales. It looks like end of fiscal year in Japan flows are driving action.
