Forex news for February
- Trump: The world is in trouble but don't worry, I'll fix it
- US may impose new sanctions on Iran tomorrow
- ECB's Coeure: We don't react to s/t fluctuations, especially those caused by energy
- US Treasury Dept to ease sanctions on Russia - Ruble touches 18-month high
- Bundesbank chief economist: There's no reason to reduce monetary stimulus
- ECB's Praet: It will take time for inflation to stabilise
- Danish central bank says it didn't intervene in FX market in January
- SNB's Dewet Moser: Crypto currencies are a fringe phenomenon
- January 2017 US ISM New York business conditions index 57.7 vs 63.8 prior
Markets:
- Gold up $6 to $1215
- WTI crude down 17-cents to $53.71
- S&P 500 up 1 point to 2280
- US 10-year yields flat at 2.47%
- AUD leads, GBP lags
The market was looking for something hawkish from Carney and he didn't deliver. That sent cable lower and it struggled to find any kind of floor. The first stalled as 1.2600, then down to 1.2536, a bounce and then 1.2525 and late in the day down to 1.2518. That will in all likelihood leave an outside bearish day on the chart but it's not so pronounced that the next twist in UK or US politics won't erase it.
Newsflow didn't have anything to capture the imagination but market moves were brisk. The US dollar was weak in Asia and Europe but it staged a comeback in New York. USD/JPY found support just ahead of 112.00 and slowly climbed to 112.75.
EUR/USD still can't decide if it's going to break out and slid down to 1.0759 from a high of 1.0825. I think part of it is positioning for a strong non-farm payrolls report. That ADP number was no joke and fast money is lining up but it means they'll be quick to sell the pop if/when the jobs report is strong.
AUD/USD was the story in Asia and Europe as it broke to multi-month highs but it ran into some sellers at 0.7700 in US trading and then faded back to 0.7660.
USD/CAD can't decide if it wants to break 1.3000 just yet. It pushed down below it again early but not below Tuesday's low and now it's recovered to 1.3025.
