Forex news for New York trade on July 22, 2019:
- BOJ's Kuroda: Economy finally no longer in deflation
- UK foreign minister quits, he pushed for confidence vote on new PM
- EU official says talks with US on reducing industrial tariffs progressing slowly
- The Chicago Fed National Activity Index for June -0.02 vs 0.10 est
- Canada May wholesale trade sales -1.8% vs +0.5% expected
- US trade negotiators headed to China next week
- Fed nominee Judy Shelton calls for 50 basis point cut
- Jeremy Hunt: UK remains committed to Iran nuclear deal
- BOE's Haldane: Brexit is undermining efforts to boost UK economy
Markets:
- Gold flat at $1425
- WTI crude up $0.60 to $56.22
- US 10-year yields down 1 bps to 2.04%
- S&P 500 up 7 points to 2983
- NZD leads, CAD lags
If you made or lost any money trading the euro today, you have an extra-special talent. The range today in EUR/USD was just 17 pips. According to Bloomberg, that's the third-narrowest ever and one of the two days ahead of it was Good Friday.
USD/JPY was a bit better with a 37 pip range. It climbed in Asia but gave it back in North America in a slide to 107.78 before a 10 pip bounce late.
Cable was under some pressure ahead of Boris Johnson's coronation this week. One of the aims of the leadership race was to unite the party but that doesn't appear to have worked with on cabinet member quitting today and pushing for a confidence vote in his own party. Johnson is going to need an election at some point to secure a better mandate because the wounds from the battles with May are still raw. Cable fell as low as 1.2456 before a 20 pip rebound. The 1.2450 zone is looking like it's trying to form a base but it's early.
USD/CAD was a mover on the day as the pair rose a half-cent. This was a tough one to explain despite the poor data -- oil prices were up and sentiment was generally good. Chalk it up to flows in a quiet market. Last at 1.3111.
AUD and NZD also came under some pressure in North America but it served to unwind gains from European trade. Both finished flat on the day
One spot to continue to watch is EUR/CHF. It made the tiniest of forays below 1.10 but only for a moment. It's skidding along that level in what could be the start of an SNB defense.
