Forex news for July 29, 2019:
- Boris Johnson: There is every chance we can get a deal
- Amlo takes a page out of the Trump playbook and says central bank should cut
- US Treasury now sees $433B in net borrowing in July-Sept vs $160B prior
- Yellen endorses the case for an insurance cut on low inflation
- Dallas Fed manufacturing index -6.3 vs -12.1 prior
- Search for IMF leader down to three names
Markets:
- Gold up $8 to $1426
- WTI crude oil up 82-cents to $57.02
- US 10-year yields up 1.6 bps to 2.05%
- S&P 500 down 5 points to 3021
- CHF leads, GBP lags badly
It was a brutal day for the pound. It was flirting with a break below 1.23 as New York rolled in but that level fell in short order and then it was a spill down to 1.2212 into the London fix. There was barely any bounce at any point and we finish close to 1.2222. The cause was Brexit with Boris Johnson and his team digging in for a hard Brexit and the EU refusing to blink. Talks between the UK and Irish governments take place today but hopes for progress are close to nil.
USD/JPY chopped around 108.65 early then caught a bid through the London fix in a ramp to 108.90, where it ran into resistance at the July high and then faded a dozen pips.
EUR/USD grinded higher to finish up around 20 pips. It had ebbed lower at the start of New York trading to hit a session low of 1.1113 before a slow march to hit a late-day session high of 1.1151.
The commodity currencies are finishing up the day within 10 pips of opening levels. Oil prices rose but it didn't do much for the loonie aside from a small fall down to 1.3158.
AUD/USD is fractionally lower with 30 minutes remaining in trading. If that holds up it will be the seventh consecutive day of declines. The run of losses started directly after the pair hit a 3-month high.
