Forex news for US trading on June 30, 2016:
- BOE's Carney: Some monetary policy stimulus likely to be needed over summer
- BOE will do its job no matter who is in power says Carney
- S&P affirms USA rating, outlook stable
- Feds Bullard: We are not on auto pilot..
- Feds Bullard: We can no longer count on usual cyclical dynamics
- European Union cut to AA from AA+ by S&P, outlook to stable
- Fed's Kaplan: Brexit vote uncertainty may slow growth
- Brexit uncertainty may be the biggest risk to the global economy say the IMF
- June 2016 Chicago PMI 56.8 vs 50.7 exp
- June OPEC production rose 250K bpd to record - survey
- Deflation danger in Eurozone has been reined in says ECB's Nowotny
- Canada April GDP +0.1% vs +0.1% expected
- Canada May industrial product price +1.1% m/m vs +0.3% expected
- US initial jobless claims 268k vs 267k exp
- EU's Dombrovskis says it's too early to predict economic impact of Brexit on Eurozone
Markets:
- Gold up $3.50 to $1322
- WTI crude down $1.49 to $48.39
- S&P 500 up 24 points to 2095
- US 10-year yields down 3.4 bps to 1.48%
- NZD leads, GBP lags
The comments from Carney livened up what had been a ho-hum end-of-month session. Cable immediately fell to 1.3250 from 1.3420 and then continued to fall as low as 1.3206 before bids at the big figure kicked in. A steady recovery has gained momentum late and it's trading at 1.3315.
The euro also fell hard after Carney hinted at an upcoming rate cut as it dropped a full cent to 1.1020 but it has slowly climbed back and is trading at 1.1100.
USD/JPY likes the idea of dovish central banks despite softening US Treasury yields. The pair dipped to 102.40 at one point from 102.90 but slowly turned and then surged up to 103.22 where it's chopping at the moment.
USD/CAD was unphased by a fall in oil prices into the settlement. USD/CAD rose to 1.3000 at one point but finishes at 1.2920, a session low.
AUD/USD took a sharp dip lower in Asia-Pacific trading but quickly recovered and has bounced around in the 0.7420 to 0.7460 range since. It's having a look at the top side at the moment.
