Forex news for New York trading on June 7, 2017:
- Comey testimony opening statement released: Trump said "I need loyalty"
- "Sources": ECB likely to nudge up growth forecasts
- Panelbase poll: Conservatives 44%, Labour 36%
- Final ComRes poll: Conservatives 44%, Labour 34%
- ICM poll shows Conservatives at 46%, Labour at 34%
- DOE Crude oil inventories has a surprise build of +3295K vs -3250K est
- German Chancellor Merkel: Can't have world where a few build protectionist walls
- Bill Gross: Treasuries relatively bargain (vs other countries)
- OECD boosts Canada growth forecast but says more needed to cool housing market
- Canada April building permits -0.2% vs +3.0% expected
- Trump to nominate Christopher Wray as FBI Director
Markets:
- Gold down $7 to $1287
- WTI crude down $2.42 to $45.77
- US 10-year yields up 3 bps to 2.175%
- S&P 500 up 4 points to 2433
- AUD leads, CAD lags
A few stories were fighting to be the main headline on Wednesday as the ECB, oil and Comey all took turns in the spotlight.
The opening statement from the former FBI director was published early it didn't contain anything we hadn't heard before. As a result, USD/JPY rallied to a session high of 109.88 from 109.40.
That took one part of the intrigue out of super-Thursday but ECB leaks added more. In European trading a sources story said Draghi will cut inflation forecasts for 3 years but a separate story said he would boost growth. The first sent the euro down 70 pips and the second helped complete a recovery. At day's end, EUR/USD finished 14 pips lower.
Oil was the surprise of the day as a huge inventory build shocked a market that was looking for draws. Crude was down slightly ahead of the numbers and then tumbled more than $1.70 afterwards. In turn, USD/CAD jumped to 1.3526 from 1.3440 and finished near the highs.
Cable was on a rollercoaster on positioning and election polls. The numbers have been relatively stable with Labour showing momentum but not enough to stop a Conservative majority. But the jitters are certainly there. Cable finished a half-cent higher and hit a two-week high before giving back the gains and then retaking them late.
The day ahead should be a fun one, we'll have minute-by-minute coverage.
