Forex news for New York trade on June 26, 2019:
- EIA weekly US crude oil inventories -12788K vs -2873K expected
- US advanced good trade balance for May -$74.5B vs -$71.8B estimate
- US May prelim durable goods orders -1.3% vs -0.2% expected
- US May prelim wholesale inventories +0.4% vs +0.5% expected
- Trump: US had 'hard conversations' with China on trade the past few days
- Boris Johnson says he doesn't want an early election
- Fed's Daly says she is uncomfortable with the direction of inflation
- More Daly: Next several wks to provide more clarity on whether more stimulus is needed
- Daly: US Labor market is very tight
- Iran's UN envoy: US offer of talks cannot be trusted as long as sanction prevail
- Atlanta Fed GDPNow Q2 tracker trimmed to 1.9% from 2.0%
- Italy to cut 2019 deficit to 2% in bid for budget deal with EU
- US sells $41 billion of 5-year notes at 1.791%
Markets:
- Bitcoin up $2400 to $13770
- Gold down $14 to $1409
- WTI crude up $1.41 to $59.24
- S&P 500 down 3.6 points to 2914
- US 10-year yields up 6 bps to 2.045%
- NZD leads, JPY lags
The rally in Bitcoin was the largest one-day climb since 2017. It's been a breathtaking move over the past few weeks that went straight parabolic today. It did most of the damage in Europe and Asia but caught a final bid late in US trading and nearly hit $14,000. All the Facebook crypto talk has led to a major surge in crypto with Bitcoin outperforming.
Oil also made a big move and WTI nearly hit $60 as the US inventory report showed the largest drawdown since 2017 and the fifth-largest on record. Late in the day it sagged back to $59.26 but along the way it sent USD/CAD to the lowest since January at 1.3107.
EUR/USD finished the day flat at 1.1367. The main move of the day was a strong bid into the London fix that continued up to 1.1391 before it eventually faded. Overall the range was tight.
It was a similar story in cable as it finished unchanged on the day in a range 20-poips on either side of 1.2685.
The New Zealand dollar's momentum continued after the RBNZ as it rose as high as 0.6693 before a 15 pips fade late. It was a slow, steady bid throughout the day with some extra kick against the yen.
Yen weakness was an across-the-board phenomenon as yields moved higher led by the US. USD/JPY rallied early then got another bid late in the US to hit a session high of 107.85. which is very close to the early-June low, which is now modest resistance.
