Forex news for US trading on June 28, 2018
- US Q1 2018 GDP (third estimate) +2.0% q/q annualized vs +2.2% expected
- Fed's Kashkari: Comfortable with raising rates to neutral
- Fed's Bostic: Comfortable with slowing the pace of rate hikes
- Fed's Bullard: Doesn't look like there is much inflation risk today
- US Kansas City Fed manufacturing index 28 vs 26 expected
- ECB said to allow some leniency on $890 billion bad loan pile - report
- BOE's Haldane: Little or no slack in UK economy
- Ireland PM: We have to start making preparations for Britain crashing out of EU with no deal
- Initial jobless claims 227K vs. 220K expected
Markets:
- Gold down $4 to $1248 (down in 9 of past 10 days)
- S&P 500 up 17 points to 2716
- US 10-year yields up 1 bps to 2.83%
- WTI crude up 52 cents to $73.58 (3 year high)
- CAD leads, NZD lags
The US dollar is on one of those moods where it seems to grind higher every day. USD/JPY was the winner today as it grinded higher on a better tone in equities that materialized in the US afternoon.
Dovish headlines were brushed aside in part because they came from the usual cadre of Fed doves. USD/JPY started at 110.20 and dipped down to 110.07 but it was all blue skies from there in a march up to the best levels of the week at 110.65 before some late profit taking.
Cable was also in the crosshairs as it slipped down to 1.3050 but it was lent a lift by talk from Haldane that the BOE would have hiked if not for some poor recent data. That pushed it slightly above 1.3100 before sliding back to 1.3070 or more USD strength.
The euro was perhaps locked into the World Cup as it chopped in the 1.1550-1.1600 range, finishing in the middle.
The only currency to really fight back against the US dollar was the loonie as the market had a big rethink on Poloz's comments yesterday, along with another day of gains in oil.
The New Zealand dollar was stuck on the floor throughout the day as it remains near the lowest levels since 2016 at 0.6755.
