Forex news for US trading on Feb 25, 2016:
- January US durable goods orders +4.9% vs +2.9% expected
- US initial jobless claims 272k vs 270k exp
- Dec US FHFA house price index +0.4% vs +0.5% expected
- Canada to provide $750 million in emergency funds to oil and gas companies
- Fed's Williams: New dot plot will help clarify Fed path
- Fed's Williams: Markets really worried about downside risks
- More from Fed's Williams: US economy growing 'very well'
- US economy still needs a gentle shove forward says Fed's Williams
- Venezuela oil minister: Prices to collapse if inventories keep rising
- Atlanta Fed GDPNow Q1 GDP estimate 2.5% vs 2.6% prior
- February 2016 US KC Fed manufacturing index -8 vs -8 prior
- Dec US FHFA house price index +0.4% vs +0.5% expected
- Fed's Lockhart: Rising rates will cause challenges for banks
- Fed's Bullard wants to get away from predicting number of rate rises
- Bullard favours jobs over GDP data
- Oil ministers from OPEC and Non-OPEC are planning to meet in March - Russian oil minister
Markets:
- WTI crude oil up 82-cents to $32.97
- S&P 500 up 19 points to 1948
- US 10-year yields down 5 bps to 1.70%
- Gold up $6 to $1235
- CAD leads, JPY lags
Commodity currencies were the stars in US trading. They were generally flat until 7 am ET, when big bids went through them all. That was followed by some consolidation and then a second wave as risk trades improved and oil climbed.
USD/CAD started at 1.3700 then fell quickly to 1.3600, bounced to 1.3650 and then dropped as low as 1.3518, breaking the uptrend since last May and the double bottom near 1.3600.
AUD/USD rallied as high as 0.7244 after consolidating around 0.7200 and finishes up 40 pips on the day. NZD was stronger in percentage terms and it also took out this week's high late in the day before edging back. Trade balance data is due later.
Trading was much less directional in EUR/USD. The pair hit a session high (at the time) of 1.1045 as US traders arrived but slumped to 1.0985 of the strong durable good orders data. It eventually climbed all the way back, chopped some more and then hit 1.1050 late.
USD/JPY was lifted by the risk trade. It rose on the durable goods orders data but stalled at 113.00 then slumped back to 112.50. A second push took it to 113.02 and that's more than 200 pips above the overnight low, despite lower Treasury yields.
Cable showed a bit of life early in US trading in an 80 pip pop to 1.3990 but it faded all the way back to 1.3900 to burn the bottom pickers. The big figure held some bids and a second rally rose to 1.3980. Last at 1.3963 in the first day of gains in awhile.
