Forex headlines for October 25, 2013:
- Core US durable goods orders for Sept -1.1% vs +1.0% expected
- U Mich consumer sentiment 73.2 vs 75.0 expected
- High New Zealand dollar dampens CPI, gives ‘degree of freedom’ on rates – RBNZ’s Wheeler
- Fitch affirms Italy at BBB+ with a negative outlook
- US Aug wholesale inventories +0.5%
- UK’s David Cameron says UK GDP figures show economy has real momentum
- Mexican central bank cuts rates
- US Senator Rand Paul threatens Yellen nomination
- Gold up $5 to $1352
- WTI crude oil up 88-cents to $97.99
- US 10-year yields down 1.5 bps to 2.51%
- S&P 500 up 0.4% to 1760, up 0.9% on the week, fresh record
The US dollar shook off the disappointing durable goods report, and remember that this data was from before the shutdown. After the shutdown, the consumer sentiment numbers showed continued dissatisfaction.
EUR/USD hit a session low of 1.3775 at the start of US trading as the buck attempted to make a comeback. Shocker: another USD comeback failed. EUR/USD slowly clawed its way back above 1.38 into the close. There are lots of offers up to 1.3850 and beyond so it will be tough for EUR/USD to make the next move.
USD/JPY was where the US dollar showed a pulse. It climbed above 97.45 from below 97.00 in European trading. Still, it was a modest move in US trading and offers at 97.50.
Cable was on the slow downward trail. From 1.6247 in Europe it sank to 1.6151 shortly before the European close. There has been a modest bounce in the past few hours to 1.6170.
The commodity bloc closed out a tough week near the lows. It was basically one way trading with the kiwi in especially dire straights. NZD/USD ends at 0.8279 from a high of 0.8361. AUD/USD challenged Thursday’s low of 0.9571 and came within a pip of breaking it but we’ll have to wait until Monday to find out what’s next.
Have a great weekend everyone. RIP Perfect Pete
