Forex news for NY trading on October 24, 2016
- BOC Poloz comments send the CAD sharply higher
- US stocks end with solid gains
- Poll shows traders view of ECB at odds with economists
- Forex technical analysis: A look at some of the major currency pairs
- Fed's Evans: Still sees some slack in labor market
- Canada trade minister Freeland:Free trade deal with Europe is not dead
- 4 reasons the BOJ won't ease at its next meeting - Goldman Sachs
- Chicago Fed's Evan (dove/non voting member): Less headroom to raise rates
- More SNB Jordan: Room to maneuver on rates if neccesary
- ECB's Nowotny: QE has depressed sovereign bond yields markedly
- SNB Jordan: CHF is still significantly overvalued
- European close: UK lower, rest of Europe gains
- More PM May: There is no suggestion Britain ins heading for a hard Brexit
- Bank of Canada to target three different core inflation measures
- UK's May says there will be a series of parliamentary debates on Brexit
- Russian oil minister says oil supply still higher than demand
- Chinese yuan falls to lowest on record
- Fed's Bullard: 'No urgency' to raise rates; December 'most likely' for hike
- Sturgeon tells May she's not bluffing about another Scottish referendum
- US Markit mftg PMI Oct flash 53.2 vs 51.5 exp
- Fed's Bullard: Low interest rates likely to remain the norm for 2-3 years
- Bank of Canada renews 2% inflation targeting regime but to re-jig inflation measures
- It's life Jim, but not as we used to know it
- Canada August wholesale trade sales +0.8% vs +0.6% expected
- Chicago Fed national activity index Sept -0.14 vs -0.13 exp
- EU's Juncker says Brexit will be a very difficult and messy negotiation
The dollar moved modestly higher in trading today (helped by better US PMI data), but there is a late day sell off against the GDP and CAD that is helping to erode those gains.
The big mover was the USDCAD. That pair has moved sharply lower late in the day. In fact it trades at the lowest level of the day after BOC Poloz said "fiscal policy eases pressure for lower rates" and "our best plan is to wait for the next 18 months". With the USDCAD trading at the highest level since March today, that has led to a reversal (higher CAD). Other CAD cross pairs are also higher off the news.
The GBPUSD has also seen a move to the upside late in the US trading day - moving back above the 200 hour MA for the 2nd time today (at 1.2228 currently). Can you trust it? For the day the range was a narrow 64 pips, but the pair traded down, up, back down and now back up within that range. I have to respect the move back above the 200 hour MA but will need a move back above the 100 hour MA at 1.2250 to confirm the upside.
The EURUSD traded in a 40 pip trading range today and is ending the day close to where it ended on Friday. The low was within a pip of the low on Friday. The high stalled at 1.0899 - a pip short 1.0900. Can there be more of a corrective rally? Yes but if it can't get above 1.0900.
The USDJPY also started to erode toward the end of the trading day. That pair moved above the 104.19 level which were highs from October 18 and October 21. That should have sent the price higher. It did but only to 104.31. At the end of the day, that level was broken and there is a move back toward the 104.00 level.
In other markets today:
- Crude oil $50.49, down -0.71%
- S&P up 0.47%. , Nasdaq up 1.00%
- 10 year note 1.7647%, +3 BP
- Spot gold $1265
Below is a snapshot the % changes of the major currencies against each other.
The CAD was the strongest. The JPY was the weakest.
