Forex trading headlines for May 14, 2013:
- US dollar hits fresh cycle highs against JPY, AUD and CHF
- Fitch raises Greece’s rating to B- from CCC
- CBO narrows US budget deficit forecast
- Canada Teranet housing index rises at slowest pace since 2008
- Japanese govt to reveal next set of growth strategies Friday – Kyodo
- US NFIB small business optimism index april: 92.1 vs 89.5 prev
- April US import prices -0.5% vs -0.5% exp
- Spanish finance minister hoping for deal on ESM bank recaps in July
- ECB’s Asmussen says the German economy is ‘relatively robust’
- Gold down $5 to $1425
- S&P 500 up 1% to 1650
- USD leads, CHF lags
There was no fighting the US dollar bulls today. The strength started in USD/JPY and quick spread elsewhere. In the end, no cross was spared as the big dollar marched higher.
There was no great explanation for the timing of today’s strength so analysts are pointing to better growth prospects in the US. It looked like asset re-allocation to me, possibly from Japan because someone is unloading JGBs.
The upgrade of Greece caused a momentary spike higher in EUR/USD but it was quickly wiped away and EUR/USD hit sell stops below 1.2940/35.
