Forex news for US trading on April 18, 2016:
- US NAHB homebuilder sentiment 58 vs 59 expected
- Kuroda: Broad yen strength could affect inflation
- Fed's Kashkari says our economy is somewhat in uncharted waters
- ECB's Knot says it's realistic to think that ECB rates won't rise for a while
- Venezuela now hopes to raise oil exports
- Venezuelan oil minister says trust badly broken after Doha meeting
- ECB buys €18.222bn vs €18.819bn prior in latest QE figures
- Fed's Dudley: US and Europe face similar challenges and goals
Markets:
- S&P 500 up 13 points to 2094
- Gold down $1.71 to $1232
- WTI crude down 43-cents to $39.93
- US 10-year yields up 1.7 bps to 1.76%
- GBP leads, USD lags
Oil was the major focus after the breakdown in Doha but the lows in crude were in the first hours of trading. Afterwards, the announcement of a strike amongst Kuwaiti oil workers helped to prompt a rebound. As a result, oil finished lower only modestly.
USD/CAD was caught in the crude trade. It hit 1.2990 early in Europe but slumped from there and was at 1.2900 when US traders arrived and continued down to 1.2795, finish near the lows.
EUR/USD started at 1.1305 and finished about 10 pips higher. In between it pushed up to 1.1332 in a five day high as it eats into last week's decline.
USD/JPY is beginning to show signs of a solid support around 107.50. It slumped to 107.90 on risk aversion and earthquake-related repatriation in early trade but slowly climbed back and finished slightly higher on the day at 108.83. At the moment, offers at 109.00 are capping the rally.
Cable ripped to 1.4275 from 1.4175 in US trading, tracing out a bullish engulfing candle but remaining within the recent parameters. Osborne made another argument for staying in the EU today as the referendum creeps closer.
AUD/USD hit a 9-month high as commodity currencies continue to cruise along. Iron ore hit $60. The pair gapped lower at the open and the closed it and rose further in an impressive climb.
