Forex news for US trading on July 29, 2016:
- Q2 2016 US advance GDP 1.2% vs 2.6% exp q/q annualized
- Canada May GDP mm -0.6 % vs -0.5% exp
- July 2016 US Chicago PMI 55.8 vs 54.0 exp
- Japan's Aso is watching the FX market with tension
- Kaplan: CEOs tell me they see solid demand but are worried about pricing power
- Fed's Kaplan: We're facing a challenging period
- Baker Hughes US oil rig count 374 vs 371 prior
- OPEC July oil output rose 100K bpd to highest in recent history - RTRS
- July 2016 US Michigan consumer sentiment final 90.0 vs 90.5 exp
- Fed's Williams: Demographics behind lower long term rates
Markets:
- Gold up $18 to $1354
- WTI crude up 33-cents to $41.46
- US 10-year yields down 5 bps to 2.18%
- S&P 500 touches fresh all-time high, finishes up 5 points to 2175
- JPY leads, USD lags
The US dollar was beaten up after weak second quarter GDP and a downward revision to Q1. The economy grew at just a 1% pace in the first half of the year. Some of the miss was dulled because it was an inventory adjustment but the dollar was sold nonetheless.
The dollar was under some minor pressure before the data on follow through from yesterday's Fed/USD reversal. The dollar fell around 60 pips across the board on the GDP released and then 20-30 pips for the remainder of the day.
What's instructive is that the US dollar finished the week at or near the lows on most fronts.
One exception was cable. It climbed fractionally above 1.3301 at the height of the selling but was beaten back 70 pips by the end of the day.
Another theme was weakness in USD/CAD. Today was the last day to close a home sale in Vancouver before a 15% tax on foreign buyers goes into effect. There's talk of flows related to rushed buys boosting CAD. That makes a lot of sense given the dismal Canadian GDP number and terrible weak for oil.
