Forex news for New York trading on Oct 27, 2016
- Sept US durable goods orders -0.1% vs 0.0% expected
- US initial jobless claims 258K vs. 255K estimate
- ECB's Mersch: Benefits of ECB policy are prevailing
- Mersch: The longer we keep rates low, the higher the risks
- The Atlanta Fed GDPNow final estimate for 3Q comes in at 2.1%
- KC Fed manufacturing +6 vs +3 expected
- US Sept pending home sales +1.5% vs +1.0% expected
- ECB's Nowotny: December decision will be on to what extent to prolong QE
- Israel's central bank leaves rates unchanged at 0.1%, as expected
- Saudis proposed a 4% OPEC cut to Russia this week - report
- US sells 7-year notes at 1.653% vs 1.655% WI
Markets
- Gold up $3 to $1269
- WTI crude up 49-cents to $49.67
- S&P 500 down 6 points to 2133
- US 10-year yields up 4.5 bps to 1.83%
- USD leads, AUD lags
It was all about bonds today as European bonds led the way in a slow-moving rout. That gave yen crosses a lift as JGBs remained frozen.
USD/JPY was a big winner as it made gains from late in Asia through the close in London in a 100 pip rally that finally flattened out around 105.25. Those are the best levels since July 27. Purported stops above 105.00 never materialized but with the market net-long JPY, there must be some lurking not-too-far away.
EUR/USD was choppy. The pair hiccupped higher on the weak core durable orders (nondefense ex-air missed badly) but stabilized around 1.0920 before a jump to 1.0940 at the London fix then a quick drop back and continuing lower to 1.0880. Last at 1.0900.
Cable was a major disappointment. Growth numbers were strong and that sent the pound higher in Europe but it had already faded when New York arrived and that was just the beginning. Heavy selling took the pair down to 1.2150 from 1.2260 and more-than-erased yesterday's gain, leaving a minor bearish outside day on the chart.
USD/CAD should have fallen on higher oil prices but it couldn't combat the strong dollar trend. The pair hit a fresh high since March at 1.3407 and finished just below the big figure. That's gains in six of the past seven days.
AUD/USD was under steady selling pressure and finished down 64 pips as the reversal after yesterday's CPI report continued. The pair begins Asia-Pacific trading after finishing on the lows of the day and just below a series of recent lows around 0.7590.
