Forex news for US trading on Nov 23, 2016
- FOMC Minutes: Most Fed officials saw rate hike appropriate 'relatively soon'
- US initial jobless claims 251k vs 250k exp
- October US durable goods orders +4.8% vs +1.7% expected
- October US new home sales 563K vs 590K exp
- November 2016 US Michigan consumer sentiment final 93.8 vs 91.6 exp
- November 2016 US Markit manufacturing PMI flash 53.9 vs 53.4 exp
- Baker Hughes US oil rig count 474 vs 471 prior
- US sells 7-year notes at 2.215% vs 2.235% WI bid
- SNB's Maechler: Swiss franc is overvalued
- Iraq supports OPEC efforts to cut oil output, Prime Minister says
- Iraq calls on OPEC to cut 900K barrels per day of production
- EIA weekly oil inventories -1255K vs +1000K expected
- Mexican economy grows 1.0% q/q in third quarter
- UK's OBR takes a shot at Hammond's plans
Markets:
- Gold down $24 to $1188
- WTI crude down 5-cents to $47.98
- S&P 500 flat at 2201
- US 10-year yields up 5 bps to 2.36%
- GBP leads, JPY lags
There wasn't too much going on in the FX market until US traders arrived for a holiday-shortened trading day. The dollar was slightly stronger up until that point but then it took off.
The move happened shortly before the durable goods orders report and continued until a strong 7-year bonds auction.
USD/JPY was trading around 111.00 as New York arrived, having struggled at 111.35/40 for the two previous days. That gave way just before the data and the strong headline from durable goods helped keep the momentum going afterwards. And go it did in a virtually non-stop move up to 112.97. Offers ahead of the big figure continued the gains and then the strong demand in the 7-year sale sent a signal to head for the exits and the pair sagged to finish near 112.50.
EUR/USD followed a similar, albeit slightly less-dramatic pattern. It was at 1.0620 to start and skidded down to 1.0526, with stops breaking below Tuesday's low of 1.0583. Some options might have helped it hang around 1.0550 for a time before the final push low at the London fix. Last at 1.0553.
Cable was a different story as it fought back against the dollar to finish higher on the day. It continues to be the only currency higher versus USD since the election. It was caught in the early chop, jumping to 1.2440 and then getting slammed down to 1.2350 but it bottomed earlier than the rest of the FX market and hit a session high late. Last at 1.2437.
The commodity currencies were also caught by the US dollar bid but to a lesser extent. AUD/USD fell to 0.7385 from 0.7425 and NZD down to 0.7000 from 0.7055. The beating in gold didn't have a particular impact outside of precious metals.
USD/CAD rose on the broad dollar bid and hit 1.3517 but the comments from Iraq helped convince the market that an OPEC deal is coming and that boosted oil to $48 from a low of $47.40. USD/CAD sagged down to 1.3465 but it finished strong at 1.3500.
