Forex news for New York trading on March 8, 2017:
- February 2017 US ADP employment report 298k vs 190k exp
- UK 2017 Spring Budget: OBR raises GDP growth forecasts
- Weekly US crude oil inventories +8209K vs +2000K expected
- ECB inflation forecasts leaked?
- Oil rout extends to $3. UAE minister says OPEC extension probable
- CIA confirms Wikileaks papers authentic
- US sells 10-year notes at 2.560% vs 2.580% WI
- Atlanta Fed GDPNow 1.2% vs 1.3% prior
- BOJ's Masai: Japan inflation remains in line with January forecasts
- Masai: Underlying inflation has turned positive in Japan
- Draghi will report to leaders about outlook at EU Summit
- Canada Q4 labour productivity +0.4% q/q vs +0.4% expected
- Canada January building permits +5.4% vs +3.0% expected
- Q4 2016 US labour costs 1.7% vs 1.6% exp
- Canada February housing starts +210.2K vs +200.0K expected
- US January wholesale trade sales -0.1% vs +0.5% expected
Markets:
- Gold down $6 to $1209
- WTI crude down $2.64 to $53.27
- S&P 500 down 5 points to 2363
- US 10-year yields up 3 bps to 2.55%
- USD leads, AUD lags
After a few days of quiet trading, Wednesday's action was more action packed.
The better growth forecasts in the UK budget stopped the bleeding in cable but only momentarily. Later, the ultra-strong ADP report sent the US dollar higher across the board. That theme was dominant until a strong bond auction halted the rise in Treasury yields.
Separately, the weekly oil inventory numbers initially gave crude a lift. There had been some negative news priced in after API late yesterday and the DOE numbers weren't as bad. But the bounce only lasted 30 minutes and the wave after wave of selling hit as technical support crumbled.
The oil selling put a bid under USD/CAD as it rose to 1.3500 from 1.3430 at the start of North American trade. Big offers and barriers at the big figure capped the rally as oil found support at $50.05 but with volatility picking up in crude, this looks like the start of something rather than a one-off.
USD/JPY jumped to 114.75 from 114.00 on the ADP numbers. There are some big options rolling off at 114.00 Friday and that could be pulling the pair back down. The bigger driver though is worsening risk appetite and a strong bond auction. The pair rounds out the day near 114.30.
