Forex headlines for April 23, 2014:
- Canada Feb retail sales +0.5% vs +0.5% expected, downward revisions to prior
- US April prelim Markit PMI 55.4 vs 56.0 expected
- US March new home sales 384K vs 450K expected
- US crude oil inventories +3.52m vs +2.28m expected
- ECB’s Hansson says ready to act if inflation misses
- ECB’s Nowotny says rate cut could be part of a package of ECB measures
- Nowotny: Any ECB measures should wait until at least June
- Warren Buffett government needs to bring down housing costs
- UK April 12-month inflation expectations 2.0% vs 2.1% prior
- US 10-year bond yields down 3bps to 2.68%
- S&P 500 down 4 points to 1875
- WTI crude down 26-cents to $101.49
- Gold up $1 to $1284
- CHF leads, AUD lags
The euro moved down to 1.3817 from 1.3837 at the start of US trading. The underlying theme was US dollar strength. That theme came under threat from the terrible new home sales data but only briefly.
USD/JPY sagged down to 102.17 in Europe but bounced early and then continued higher. It rounds out the day at the highest levels of US trading at 102.48.
Cable touched a one-week low, hitting stops below 1.6780 and down to 1.6763 in a flash but bids at 1.6760 held and the pair reclaimed the losses. Stops remain below 1.6760.
The Canadian dollar dumped on the retail sales numbers. Although the rise in Feb was in-line with expectations, it came from a lower base due to downward revisions. Housing-sensitive sectors also added to worries.
The Australian dollar continued lower after the CPI numbers, hitting a session low at 0.9268 which was only a few pips below the Asia low and didn’t trigger any additional selling. Last at 0.9286.
The kiwi is in the spotlight in the hour ahead as we get ready for the RBNZ decision. US traders have been buying since they came through the door and pushed the pair up to 0.8590 from 0.8565.
