Forex news for US trading on Sept 6, 2016
- August ISM non-manufacturing index 51.4 vs 55.0 expected
- ISM's Nieves: Need to 'wait and see' if slowdown is a trend
- New Zealand GDT price index +7.7% in latest auction
- Lacker: The Fed's structure is working well and doesn't need an overhaul
- SNB's Jordan: We know that it's tough for pension funds but we can't help
- Iranian President Rouhani warms to production freeze
- EU finance ministers will take another step towards a United States of Europe on Friday
- US military ship involved in close call with Iranian military ship
- Iran is now "closer to the idea" of freezing oil production
- Saudi Arabia said to weigh canceling $20 billion of projects in budget cut
- UK's May won't put all her cards on the table at Brexit negotiations
Markets:
- Gold up $22 to $1349
- WTI crude up 42-cents to $44.85
- US 10-year yields down 6 bps to 1.54%
- German 10-year yields down 6 bps to -0.11%
- S&P 500 up 4 points to 2184
- NZD leads, USD lags
The market turned Tuesday on a terrible ISM manufacturing index. It was the worst one-month decline since 2008 and there were no easy explanations as to why it fell so badly.
The dollar took the news hard. USD/JPY immediately fell 102.66 from 103.30 and then continued to fall as the number sunk in. The low was 101.93 and it's on pace for a finish just above 102.00.
EUR/USD similarly jumped 40 pips to 1.1200 and then continued to a high of 1.1263 in the US afternoon. There was little-to-no giveback in the US dollar at any point.
The big winner in the past three weeks has been the pound and that continued Tuesday as cable hit a seven-week high. The driving force has mostly been the GBP-side in that time but today it got a lift from USD as the pair rose to 1.3445 from 1.3350. It's the fifth day of gains in a row.
The commodity bloc also rallied, led by NZD on a third consecutive strong dairy auction. NZD/USD was shopping sideways at 0.7350 as New York arrived and jumped as high as 0.7422 afterwards. That's the best since May 2015.
AUD/USD had the RBA decision to contend with earlier but that was largely a non-event. The ISM number propelled it to 0.7681, which is just below the Aug 28 spike high of 0.7692
USD/CAD is also flirting with the Aug 28 extreme of 1.2825. It matched that level and then bounced to 1.2844 in the fourth day of declines.
