Forex news for New York trade on January 28, 2021:
- US Q4 advance GDP +4.0% vs +4.2% expected
- US initial jobless claims 847K vs. 875K estimate
- US advance goods trade balance for December -$82.5 billion vs. -$84.0 billion estimate
- US December prelim wholesale inventories +0.1% vs +0.5% expected
- Germany January preliminary CPI +1.0% vs +0.7% y/y expected
- US December new home sales 842K vs 870K expected
- US sells 7-year notes at 0.754% vs 0.758% WI
- ECB's Schnabel: We must minimize cliff effects with an abrupt withdrawal of public support
- ECB's Kazaks: No need for a rate cut now as other instruments are better suited
Markets:
- Gold down $1 to $1842
- Silver up 5%
- WTI crude oil down 54-cents to $52.31
- US 10-year yields up 3.7 bps to 1.05%
- S&P 500 up 36 points to 3787
- NZD leads, JPY lags
The hammer came down on the meme stocks and that sent a 'situation normal' message to the broader market and a huge buy-the-dip trade kicked off in equities along with a risk trade in FX that weighed on the US dollar.
At one point the S&P 500 was up 2.2% in the best day since October but the gain was more than halved late. The FX market was slower to move and slower to react.
In general though, the commodity currencies and sterling led a rebound and reversal from yesterday's moves. AUD/USD rallied to 0.7698 from a low of 0.7592 but couldn't get above the figure.
The US GDP data missed the mark on a softer consumer but it didn't have much effect on the market, nor did the other economic data. It does paint a picture of a slightly weaker economy but at the moment, no one cares about anything but the post-virus economy.
Is it the weekend yet?
