Forex news for Americas trading on August 30, 2019:
- August final U Mich consumer sentiment 89.8 vs 92.3 expected
- US core PCE deflator for July 0.2% vs 0.2% estimate
- Canada Q2 GDP +3.7% vs +3.0% expected
- UK PM Johnson: Parliament will have a lot of time for further Brexit consideration
- ECB's Nowotny: Buying equities for stimulus isn't an option
- Storm-force winds now virtually guaranteed to hit near West Palm Beach, Florida
- Baker Hughes US oil rig count 742 vs 754 prior
- August oil output rises by 80,000 bpd, oil sinks further
- Trump says euro 'dropping like crazy' as he laments dollar
Markets:
- Gold down $4 to $1523
- WTI crude down $1.64 to $55.08
- US 10-year yields flat at 1.49%
- S&P 500 flat at 2924
- JPY leads, EUR lags
The month wrapped up with the euro falling below the August low and through 1.1000 for the first time since 2017. Trump was even tweeting about the euro but it's not about ECB action, it's a poor economy and some fresh political risks in Italy.
Cable made a run to 1.2225 early but USD strength ahead of the long weekend cut it down to 1.2160. There are all kinds of political worries and the ball gets rolling on Tuesday when parliament returns.
USD/JPY traded in the 106.10 to 106.45 range and finished in the middle. After a dump at the start of the month there have been some forays lower but we finish right in the middle of the range over the past three weeks.
USD/CAD was a big mover as it fell hard hitting 1.3250 on strong GDP headlines but the details of the data showed a soft consumer and weak business investment. That, combined with USD strength and oil weakness sparked a total reversal to 1.3318 and the highest close since Aug 19.
The kiwi continued to struggle and hit a fresh low since 2015 at 0.6283. The Aussie was more resilient but holding the lows isn't exactly a win after the rout in AUD/USD in the past six weeks.
