Forex news for US trading on June 29, 2016:
- ECB in no rush to ease policy after Brexit vote if markets remain calm - report
- May 2016 US personal income 0.2% vs 0.3% exp m/m
- US May core PCE 1.6% y/y vs 1.6% expected
- Constancio: ECB must 'wait a little bit' on any action
- Japan says will weigh trade pact with UK if Brexit happens
- ABN Amro slashes UK 2017 GDP forecast after Brexit vote
- ECB's Mersch: Brexit is a challenge
- Atlanta Fed GDPNow forecast bumped to 2.7% from 2.6%
- BOE Governor Carney to deliver speech Thursday
- EIA US weekly oil inventories -4053K vs -2500K expected
- US May pending home sales -3.7% m/m vs -1.1% expected
- Italy PM Renzi confirms he will quit if he loses referendum
- Juncker says Scotland has won the right to be heard in Brussels
- June 2016 German HICP flash 0.2% vs 0.2% exp y/y
Markets:
- Gold up $6 to $1318
- WTI crude up $1.68 to $49.53
- S&P 500 up 35 points to 2071
- US 10-yaer yields up 4 bps to 1.51%
- GBP leads and JPY lags for the second day
The hope that Britain can either craft a largely-similar trade deal or avoid a Brexit continues to boost risk assets. There's no evidence to support it as European leaders continue to drive a hard line and Conservative leadership candidates stay quiet.
But that's secondary to price action, which may have also been supported by quarter-end flows and options. Cable climbed as high as 1.3534 before backing off a full cent after Europe closed.
USD/JPY is finishing at the highs of the day at 102.94 after struggling to get above 102.80 for hours. A dip down to 102.47 was bid up as stock roared for a second day. The S&P 500 closed above the 61.8% retracement of the Brexit fall.
Another late move is in USD/CAD as it finally spills below what had been solid support at 1.2960. Oil roared after the EIA confirmed the large draw reported by the API yesterday. Crude touched $50.00 and then backed off.
EUR/USD was given a lift by headlines saying the ECB would stand pat. But there wasn't much appetite for euros after the rise to 1.1125. The range was 1.1070 to 1.1129 in US trading.
AUD/USD rose to 0.7426 early but skidded down to 0.7415 before a late rise to 0.7444.
