Forex news for North American trading on October 19, 2018:
- Canadian August retail sales -0.1% vs 0.3% est.
- Canada September CPI +2.2% y/y vs +2.7% expected
- Baker Hughes US oil rig count 873 vs 869 prior
- UK said to drop Brexit demand on Irish border to ease deal
- Fed's Bostic: No sign of clouds on the horizon
- BOE's Carney: UK banks can deal with Brexit and trade war at same time
- Italy: Salvini and Di Maio are considering moving on the deficit target
- NY Fed Q3 GDP Nowcast dips to 2.13% from 2.25%
- US September existing home sales 5.15m vs 5.29m expected
- Italy's Salvini says ready to remove parts of tax plan that 5-Star objects to
- CFTC Commitments of Traders: GBP and JPY shorts trimmed
Markets:
- Gold up $1 to $1226
- WTI crude up 63-cents to $69.28
- S&P 500 down 1 point to 2767
- US 10-year yields up 1.5 bps to 3.19%
- NZD leads, JPY lags
Fundamentals were the main driver on Friday as US equity volatility calmed slightly. It started with a double dose of poor Canadian data points as retail sales and CPI missed estimates. The response was swift with USD/CAD up to 1.3120 from 1.3035. After a small retracement the pair made a fresh high at 1.3132 late and closed near the highs.
In Europe, kinder words between Italy and the EU sparked a rally and there was also talk of Italy lowering its deficit target. It's all constructive and it was all good for the euro as it climbed to 1.1510 from as low as 1.1435 in Europe.
Cable got some help from a report saying May was ready to compromise on the Irish border. That led to a 50 pip jump to 1.3100 but right away there were questions about whether she can get those ideas through her party or parliament. Cable slid to 1.3075 late.
USD/JPY was bounced around by stocks but generally traded close to 112.50, where it finished, up 30 pips on the day.
The kiwi was the standout performer this week but after topping 0.6600 early in North America it pulled back to 0.6580. Similarly AUD tracked down to 0.7110 from 0.7150.
Have a great weekend.
