Forex news for North American trade on June 18, 2020:
- US initial jobless claims 1508K vs. 1290K estimate
- BOE's Bailey says BOE didn't discuss negative rates and yield curve control
- June Philly Fed +27.5 vs -21.4 expected
- California coronavirus cases rise 2.6% vs 2.0% seven-day average
- Fed's Mester: It will take another year or two to get economy back to pre-pandemic
- Arizona reports a record 2519 new coronavirus cases
- Texas coronavirus hospitalizations rose 5.5% in past 24 hours vs +11% a day ago
- Florida coronavirus cases rise 3.9% vs 7-day average of 2.5%
- UK coronavirus cases rise by 1218 vs 1115 a day ago
- ADP Canada May employment report +208.4K vs -226.7K prior
- Canada April wholesale trade sales -21.6% vs -10.6% expected
Markets:
- Gold down $2 to $1724
- WTI crude up 87-cents to $38.83
- US 10-year yields down 4 bps to 0.70%
- S&P 500 up 2 points to 3115
- JPY leads, GBP lags
Cable fell to the lowest since June 1 after the BOE boosted bond purchases by 100B pounds while leaving rates unchanged. The pound initially pared declines on the news and did again on Bailey's comments but both of those moves were sold hard it a steep decline for the pound.
The euro also struggled and briefly fell below 1.1200 but anticipated stops there didn't materialize and we're wrapping up the day right around the figure.
The broad tone was more-negative in FX than in equities as commodity currencies and EM lagged. The loonie fell despite a 2.5% gain in oil. Overall the moves in commodity currencies were still modest but it was the second day of negativity and bears close watching.
USD/JPY remains a pair that isn't offering much int terms of directionality. It chopped around today but finished unchanged.
