- US August durables orders -1.3%, weaker than median forecast -1.0%. But durables ex-transportation +2.0%, double the median forecast of +1.0%. Stocks rallied, treasuries sold off in wake of data
- Fed’s Lacker: US economy expanding about 2% in second half, gradually accelerating next year. We’ll see how data unfolds before we decide on further action
- US August single home sales 288k, slightly below median forecast 290k
- House panel approves bill threatening duties on China’s “undervalued currency” House to vote on bill next week
- Bk of Canada Governor: Recent US weakness concern to Canada
- Canada’s FinMin: Always concerned about currency inflexibility, especially Asian ones
- UK raises threat of Irish-related terror attack to substantial from moderate; attack strong possibility
- French August jobless total rises 0.6% m/m to 2.693 mln
- Japan releases Chinese fishing boat captain – Kyodo
Dollar little mixed, generally weaker but steady against yen and firmer versus swissy. General risk sentiment has been in good shape, US stocks demonstrably firmer, US treasury yields firmer, oil firmer etc etc.
Against this backdrop swissy has given up safe haven gains. There were also mutterings of SNB buying the EUR/CHF cross in Europe earlier (we couldn’t confirm) which didn’t help swissy any. Cross presently up at 1.3280 from early 1.3140.
EUR/USD took off in the wake of the US durable goods release as the market homed in on the 2.0% surge in durables ex-transportation. Stops were tripped through 1.3460 on way to session high 1.3492. Talk of decent 1.3500 barrier option interest and protection of said interest has so far capped the upside. We’re up at 1.3470 from early 1.3415.
Cable up at 1.5810 from early 1.5720, the move accelerating quickly when stops above 1.5740 were tripped. Some pressure on the EUR/GBP also aided cable’s cause. The cross is down at .8518 from early .8533, with well-noted sell orders at .8540/50 just about capping the topside.
USD/JPY at 84.35 with trading confined ot very narrow range. Effectively unchanged on the day.
AUD/USD up at .9580 from early .9545 having been as high as .9615 at one stage, aussie benefitting from better risk appetite.
